India’s global appeal as a business destination increases

The EIU anticipates robust economic expansion from 2024 to 2028, foreseeing increased foreign direct investment flowing into India

India emerges as third most sought after business destination / Image - Unsplash

India witnessed significant improvement in its ranking as a global business environment a recent analysis by the Economist Intelligence Unit (EIU), an organization that provides forecasting and advisory services to assist entrepreneurs, financiers, and government officials.

India came third on the list of most improved countries after Greece and Qatar, due to its burgeoning youthful demographic, promising robust demand, and a readily available labor force, as outlined in the report.

Emphasizing India's unique potential in market scale, akin to that of China, the report underscores the nation's allure for foreign direct investment, projecting strong economic growth between 2024 and 2028. This projection comes amidst a global trend of companies seeking alternative manufacturing destinations beyond China, further enhancing India's appeal as a business hub.

“India is the only single-country market that offers a potential scale comparable to that of China. India’s youthful demographic profile promises both strong demand and good labor availability,” the report said.

Greece, alongside India, witnessed substantial progress in the Business Environment Rankings (BER), attributed to policy reforms under a pro-business government. On a broader scale, Singapore, Denmark, and the US retained their positions as the top three countries for conducting business globally.

Germany and Switzerland secured fourth and fifth positions, respectively, solidifying their status as favorable business destinations. Meanwhile, Canada, Sweden, New Zealand, Hong Kong, and Finland completed the top ten, reflecting a diverse range of economies offering conducive business environments.

The EIU's comprehensive assessment evaluates the attractiveness of business environments across 82 countries and territories, taking into account factors such as inflation, cost of living, economic growth, and fiscal policies. This report serves as a valuable tool for businesses and policymakers alike, offering insights into global trends and opportunities for economic development.