New Delhi: India can attract FDI to a ratio of 1.5 pc to 2 pc of its Gross Domestic Product (GDP) by further improving on ease of doing business and building infrastructure, Japanese financial services major Nomura said Tuesday.
The group’s Chief India Economist Sonal Varma said the country is in favourable position to attract foreign firms planning to relocate their manufacturing bases due to trade tension between the US and China.
“We can easily see a ratio of FDI to GDP at 1.5 er cent to 2 pc,” Sonal Varma, Chief India Economist at Nomura, said on Tuesday. India gets between 1 pc and 1.5 pc FDI to GDP ratio.She said the conditions such as a large domestic market to attract higher FDI level is in place in India
“Given India’s big domestic market, I think India has the pull factor. But the government should focus on two things: first get the infrastructure in place, and second improve on ease of doing business,” Varma said.
She pointed out that China, in the initial phases of its economic take off, between 1990s and early 2000s, used to attract FDI in excess of 2 pc in ratio to its GDP.
