Even though the pandemic and geopolitical strife have led to investor uncertainty, India has the potential to attract $475 billion in foreign direct investment (FDI) inflows over the next five years due to the l Emphasis on reforms and economic growth, according to a Confederation report. of Indian Industries (CII) and EY.

The report notes that FDI in India has witnessed a steady increase over the past decade, with the fiscal year 2021-22 receiving FDI inflows of $84.8 billion despite the impact of the COVID-19 pandemic. 19 and geopolitical developments on investment sentiment.

“India is seen as an emerging manufacturing hub in global value chains, a growing consumer market and a hub for ongoing digital transformation. Furthermore, in a rapidly changing geopolitical environment, India’s broad and stable democracy and consistent reform measures are recognized by multinational corporations (multinational corporation),” the report said.

The report, “Vision—Developed India: Opportunities and Expectations of Multinationals,” adds that 71% of multinationals working in India see the country as an important destination for their global expansion. Optimism is driven by both short-term and long-term prospects.

“A majority of multinationals believe the Indian economy will perform significantly better in 3-5 years, supported by 96% of respondents positive about India’s overall potential,” the report said.

Confidence in India’s potential, report says, stems from strong consumer trends, digitalization and a growing service sector, as well as the government’s focus on infrastructure and manufacturing . The Indian government’s continued efforts to reduce regulatory hurdles are also fueling positive perception among multinationals, he said.

More than 60% of the multinationals cited in the report indicated an improvement in the business environment over the past three years. “As part of the continuous improvement of the business environment, multinationals would like to see increased efficiency of the national single window for approvals/authorizations; greater tax certainty and a stronger contract enforcement mechanism, among other measures,” he said.