Strategies for India
Survey question: Has the passing of reform, including the Goods & Services Tax, changed your plans to invest in India?
The passing of the GST and the reforms agenda
more widely have been characterised as a significant
opportunity for India to overcome many of the barriers
to entering the market that have previously stymied
investment, particularly from overseas. That around one
third of respondents (30.9%) said they were no more or
less likely to invest, and that nearly one quarter (22.8%)
do not see the development as a reason to factor the
country into their plans, means a combined 53.7% of
those surveyed have been unmoved by the reforms made
to improve the attractiveness of the Indian market. An
implication of this outcome is that India’s recent high
levels of FDI may be unsustainable, at least as far as
investment in logistics is concerned. Overall, FDI in India
has been at record highs over 2014 and 2015, but fell
approximately 21% in the first six months of 2016 against
the previous year, according to OECD figures.
To read the Emerging Market 2017 full report, click here.