India Attraction
Growing Beyond
Ready for the transition
Ernst & Young's 2012 attractiveness survey
India
Emerging Markets Center
The Emerging Markets Center is Ernst & Young's “Center of Excellence” that quickly and effectively connects you to the world's fastest-growing economies. Our continuous investment in them allows us to share the breadth of our knowledge through a wide range of initiatives, tools and applications, thus offering businesses, in both mature and emerging markets, an in-depth and cross-border approach, supported by our leading and highly globally integrated structure.
For further information on emerging markets, please visit: http://emergingmarkets.ey.com
Ready for the transition
Ernst & Young's attractiveness survey 2012
India
Contents
2 4 India: ready for the transition? Executive summary
6
“An FDI hot spot in a cooling world”
7 8 9 10 11
India in 2011
Performance 2011: foreign investment decisions in India increase by 20% Global ranking: third in terms of FDI value; fourth for number of projects Where from: India’s FDI investors Where to: India’s top five FDI destinations Investment prospects for 2012
12
“Manufacturing and shared services”
13 14 16
India’s attractiveness pillars
What investors seek in India: growth and cost competitiveness What investment projects are there in India: manufacturing — the next big leap Looking closer: FDI by sector
Infrastructure / Automotive / Retail and consumer products / Technology / Financial services / Life sciences / Cleantech
30
“Transitioning toward a more open and innovative economy”
31 32 34
Meeting investors’ 2020 agenda
Key location factors: investors are more demanding toward future business conditions India's fundamental advantages are widening its appeal to investors Innovation as a growth engine for India
38
Methodology
Ernst & Young's 2012 India attractiveness survey Ready for the transition
1
Foreword
India: ready for the
Ready for the transition
Ernst & Young's 2012 attractiveness survey
India
Emerging Markets Center
The Emerging Markets Center is Ernst & Young's “Center of Excellence” that quickly and effectively connects you to the world's fastest-growing economies. Our continuous investment in them allows us to share the breadth of our knowledge through a wide range of initiatives, tools and applications, thus offering businesses, in both mature and emerging markets, an in-depth and cross-border approach, supported by our leading and highly globally integrated structure.
For further information on emerging markets, please visit: http://emergingmarkets.ey.com
Ready for the transition
Ernst & Young's attractiveness survey 2012
India
Contents
2 4 India: ready for the transition? Executive summary
6
“An FDI hot spot in a cooling world”
7 8 9 10 11
India in 2011
Performance 2011: foreign investment decisions in India increase by 20% Global ranking: third in terms of FDI value; fourth for number of projects Where from: India’s FDI investors Where to: India’s top five FDI destinations Investment prospects for 2012
12
“Manufacturing and shared services”
13 14 16
India’s attractiveness pillars
What investors seek in India: growth and cost competitiveness What investment projects are there in India: manufacturing — the next big leap Looking closer: FDI by sector
Infrastructure / Automotive / Retail and consumer products / Technology / Financial services / Life sciences / Cleantech
30
“Transitioning toward a more open and innovative economy”
31 32 34
Meeting investors’ 2020 agenda
Key location factors: investors are more demanding toward future business conditions India's fundamental advantages are widening its appeal to investors Innovation as a growth engine for India
38
Methodology
Ernst & Young's 2012 India attractiveness survey Ready for the transition
1
Foreword
India: ready for the