India can attract FDI worth $475 billion in next 5 years; EY-CII report India can attract FDI worth $475 billion in next 5 years; EY-CII report

Tags: Economy/Finance

According to a recent report of Ernst and Young (EY) -Confederation of Indian Industries (CII) titled “Vision – Developed India: Opportunities and Expectations of MNCs”, India’s focus on reforms and economic growth will result in foreign direct investment (FDI) of $475 billion in the next five years”.  In 2022-23 the total FDI in India was $84.8 billion.

Reasons for expecting record $475 billion in the next 5 years  

The report is based on the survey done by the EY-CII with the Multinational Companies (MNC). The report has listed some factors which are making India a favourite Investment destination for the MNC’s. They are as follows;

Most of the Multinational companies (MNC) expects the Indian economy will perform significantly better in the next three to five years and in the long term.

India is seen as an emerging manufacturing hub in global value chains, a growing consumer market, and a global leader in the digital transformation of government and private sectors alike.

The Government initiative like Production Linked Incentive (PLI) which seeks to make domestic manufacturing globally competitive and create global champions in manufacturing will also help India in attracting significant investment.

Ernest and Young Global limited is a British multinational consultancy company. Confederation of Indian Industries (CII) is an Indian business lobby of companies in India.