The global environment of International Investment has been witnessing tumultuous ebbs and flows in recent times. The pandemic has unexpectedly hit most of the economies. However, even as the world recovers from the impact of the pandemic, the geo-political power struggle has had a resonating effect. It has caused a situation of uncertainty amongst investors. These interruptions have caused leading businesses to take a fresh look at the global business landscape, possible fault lines, and corresponding contingency plans.
Amid such trying times, it comes as a breath of fresh air that investors from around the globe have shown steady confidence in India being a stable partner and a lucrative investment destination. We will examine how India has managed to stand out from its competitors.
India has consistently taken steps to improve the ease of business (EoDB). As a result, 200 companies in the US, including Bloomberg, are seeking to move bases from China to India. The World Bank on Tuesday bumped up India’s FY23 growth forecast to 6.9% from 6.5% projected earlier in October. There has been a considerable rise in FDI inflow, from USD 141.10 billion (Feb’18 – Feb’20) to USD 171.84 billion (2020-2022), nearly a 23% increment.
The steep rise in the number of startups is evident; this year, over 14000 startups came into action, increasing from 733 as stated last year. There is a noticeable growth of nearly 50%. Among these, 44 startups were given Unicorn recognition! This growth of the Indian Startup ecosystem also has a positive impact in piquing the interest of MNCs like Nestle, Pepsico, and Coca-Cola since this creates an exciting pool of homegrown service providers and channel partners closer to home, bringing down the cost of MNCs by a considerable margin.
In retrospect, India has managed to grab a good seat on the roller coaster just as the ride is about to crest. How India works to pave the way from this point onwards remains to be seen and should be an exciting story.