More foreign money to flow in as 70% investors make profit: Survey

NEW DELHI, DECEMBER 3: A FICCI survey indicates that around 70 per cent of foreign investors are making profits from their India operations and 83 per cent are considering expansion of business. The survey has revealed that about 71 per cent view India as a high growth market and express confidence that the 8 per cent GDP growth would be surpassed in 2006-07 as well.

The survey research sample includes 76 current foreign direct investors, across various industries and verticals, from all around the globe operating in India, with company turnover ranging between Rs 1 crore to Rs 100 crore and those with turnover above Rs 100 crore.
The Survey reveals that a vast majority of current foreign investors are succeeding in terms of profits and realising the profitability targets set for their Indian operations. Almost 7 in 10 foreign investors have reported that they are making profits in their Indian operations. 91 per cent of the companies making profits say that they have been successful in meeting their profitability targets in India.
An overwhelming 87 per cent of the respondents said that there are opportunities for more FDI in India. The fact that foreign investors are looking at India as an important market for the future is reinforced by the fact that nearly 83 per cent of the respondents are considering expansion of their Indian operations.
The Ficci FDI Survey notes that the perception about India as a manufacturing base has reasonably improved over the last two years.
In the last survey about 32 per cent of the participating companies rated India as an attractive manufacturing base. In the present survey this proportion has increased to 48 per cent. The proportion of respondents citing ‘intense competition’ as a characteristic feature of the Indian market has gone up from 59 per cent in Ficci FDI Survey 2005 to 67 per cent in Ficci FDI Survey 2006.

Source : Indian express