India will attract $475 billion investment in five years - CII-EY report

New Delhi: – India could attract foreign direct investment of about $475 billion over the next five years, according to a report released by CII (Confederation of Indian Industry) and EY. Even with this backdrop of ongoing geopolitical tensions, FDI in India has not been particularly affected. India’s huge consumer power, reforms undertaken by the Indian government and the push towards digitization in India have made multinational companies aware of India’s potential. The report, therefore, believes that foreign investment coming into India will continue to grow in the future.

Titled ‘Vision – Developed India: Opportunities and Expectations of MNCs’, the CII and EY report studied the FDI inflows in India to date and over the next five years. FDI in India in the financial year 2021-22 is estimated at $84.8 billion. During this period, economic instability was created due to the crisis of the Coronavirus pandemic and geopolitical tensions. However, the report pointed out that even during such a period, more than $84 billion of foreign direct investment came to India. FDI in India has been increasing since the last decade. The report also noted that the proportion had risen significantly in the last five years.

As many as 71% of multinational companies worldwide want to expand their business in India. The report says that 96% of multinational companies have expressed satisfaction with India’s performance. If the pace of economic reforms undertaken by the Indian government continues, the investment of multinational companies in India will also increase. Multinational companies say that India’s economic growth in the future will be based on India’s immense consumer power, services sector, digital economy, infrastructure and the advancement of the manufacturing sector. For this reason, MNCs will invest more in India to strengthen their manufacturing and associated supply chains, the report claims.

The IMF and the World Bank also express confidence in India’s economic performance. According to the data of the IMF and the World Bank, India will overtake Germany and Japan to become the third-largest economy in the world by 2028.