India 5th Most Preferred Investment Destination
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New Delhi: India was seen to be the fifth preferred destination to invest after the US, China, Germany and the UK, moving up four places from last year, a survey by consulting and audit firm PwC said.
“Global perception validates India’s position as an investment destination… The fourth most-favoured destination in 2020, India slipped to the fifth position a year later, the eighth spot in 2022 and ninth in 2023,” the annual survey released on the eve of the World Economic Forum meeting in Davos said.


Most CEOs — and it included responses from 4,702 of them, including 79 from India — were more upbeat on growth than last year with those in India reporting a 30-percentage point increase in optimism. “India appears to have countered the impact of global economic slowdown through government capex spending, domestic demand and its other economic shock absorbers. Strong fundamentals, healthier balance sheets for banks and corporates, fiscal consolidation, manageable external balance, and substantial foreign exchange reserves contribute to a positive outlook,” the report said.
The optimism meant that 57% of the Indian CEOs indicated that they will increase the workforce by 5% over next 12 months, a sharp contrast to 2023 when they had spoken of planned hiring freeze and headcount reduction. Internationally, private equity, hospitality and engineering sectors are among those that are projected to see the highest hiring increases. While there is an expectation of early rate cuts in 2024 in India and the US due to a moderation in inflation, those occupying corner offices flagged more climate and geopolitical shocks as possible risks.

“Cyber and health risks, and inflation figured high among India CEOs’ concerns around factors impacting growth of their businesses, while changing customer preferences and technological shifts, primarily evolving GenAI, were identified as top drivers of reinvention,” the report said.

 

Almost 60% of the CEOs surveyed suggested that customer preference was the top driver for change, followed by technological change (57%) and government regulations (47%). It also said that around 71% of India CEOs expected GenAI to increase employee efficiency over the next 12 months, while 70% believed it would improve their own performance. There were some 30%, who said it will result in shrinking of jobs, although there was acknowledgment that new avenues would also open up.

 

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