India is likely to emerge as the world leader in new manufacturing investments with 25 per cent of global corporates expected to invest here over the next five years. The country is also seen outpacing all other nations in rate of growth of overall investments, says a new report.

The KPMG Global Corporate Capital Flows 2008/09 to 2013/14 study, which tracks companies’ investment intentions in 15 countries, shows that respondents expect India to do particularly well in industrial products, where it will displace US to take second place behind China. Interestingly, 64 per cent of Indian investment is expected to come from companies that currently have no presence here.

In terms of rate of growth of investments, while only 10 per cent of international corporates are likely to invest in India this fiscal, around 18 per cent would pump money into the country by FY 2014 — the largest increase recorded in the survey.

In terms of influence, India is expected to rapidly overtake Japan, France, Russia and Brazil in the ranks of the most influential countries, coming in at fifth place. This would be possible due to rising Indian dominance in all sectors, particularly business and consumer services, IT/telecom and manufacturing. The US would continue to lead in terms of influence with 59 per cent of corporates expecting it to remain dominant in their sector till 2013-14.

Indian business expects the bulk of its investment this year (35 per cent) to go to the US. Around 15 per cent are likely to put in money in West Asia while 10 per cent are bullish on Hong Kong and Singapore. Over the next five years, the US will continue to stay popular, attracting 25 per cent of Indian investments.

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