India to be largest recipient of investment in manufacturing: KPMG

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Mumbai, Jun 19 (UNI) India is likely to see the largest growth in its share of foreign investment overall, and should become the world leader for investment in manufacturing, with a significant amount of flow expected from first time investors in the next five years.

According to a survey released by Consultant KPMG, the expected increase of Indian investment in the middle-east is related to the proximity and the opportunity created from the oil price led wealth effect.

India must continue to build on its investment climate to monitise this sentiment, KPMG CEO in India Russel Parera said in a release here today.

The results showed a move away from investments in the US, Japan, Singapore and the UAE, and a big increase in flows to Brazil ,Russia, India and China (BRIC).

Commenting on the findings of the survey, KPMG (India) Head of Tax and Regulatory Services Sudhir Kapadia said, ''This trend-setting KPMG survey validates anecdotal evidence suggesting a major shift of capital flows from the USA, Japan and other European countries to the BRIC countries, in the next five years. It is significant to note, while 10 per cent of the companies surveyed, expect to invest in India currently, that number will go up to 18 per cent in five years, the biggest gain amongst all other BRIC countries. Further an increasing proportion of investments will flow into industrial products and manufacturing in India. Interestingly 64 per cent of the investment into India is expected to come from new entrants to the country.'' He said India had the potential to play an even more influential role in flow of capital and it's a great opportunity for India to further improve the economic and fiscal climate and proactively attract and retain investments in its growing economy. Indeed, India Rising was all set to fulfill its tryst with destiny that Nehru spoke about in his historic 1947 Independence speech and occupy its rightful place in the comity of nations, he said.

These conclusions come from a global survey of corporate investment plans, carried out by KPMG International. Corporate investment strategists from over 300 of the largest multinational companies in 15 major economies were asked, where they plan to invest in the next 12 months and in five years' time.

China was expected to overtake the US as the world's leading recipient of corporate investment in the next five years, and should become the most influential country in IT and telecoms, industrial products and mining, a new study of future global capital flows has found. But the European economies are expected to keep their attraction for investors, with the UK maintaining a very strong position, especially in financial services.

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