Despite regulatory hurdles, India continues to be among the preferred destinations for FDI due to the country’s high economic growth, with both Mumbai and Delhi being touted as among the cities likely to produce the next Microsoft or Google, a survey said.
According to the ‘9th Annual European Attractiveness Survey’ by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of India’s perceived specialisation as a hub for low cost outsourcing business.
“Foreign investors are not deterred by current regulatory issues to invest in India… India’s perceived specialisation as a low-cost business process outsourcing (BPO) hub continues to appeal the investors across the globe,” the report said.
