Amid global uncertainties, the US Inc is bullish on India as an investment destination compared to other emerging economies, but wants the country to improve its intellectual property rights regime and infrastructure, a survey said.
The survey, which polled members and company executives of the US-India Business Council, showed that a large number of respondents rated future economic growth in India as highly sustainable despite uncertainties in other global markets.
Further, a large section of respondents answered in the affirmative regarding their plans to invest in India in order to establish or expand their operations over the next five years, according to the survey conducted by Ernst and Young.
"India is, and will continue to be, a premier destination for investment," is the assessment of most of these respondents, it said.
Releasing the 2008 USIBC Business Perception Survey in New Delhi, Utkarsh Palnitkar, Ernst & Young, Partner- Transaction Advisory Services said, "The findings demonstrate the depth of commitment of USIBC member companies to India's continued economic growth. The news is quite positive -- provided that the government addresses several critical issues."
While the survey pointed out that the Indian economy will continue to attract global investor interest, much needs to be done for it to become more investor-friendly, it suggested.
Respondents highlighted the need to improve the ease of doing business in India along with the need to enhance its social, physical and urban infrastructure.
In order to drive investor confidence and lower the risk faced by business establishments, the survey emphasised the need to strengthen the country's intellectual property regime vis--vis other emerging Asian economies.
Palnitkar said, "The survey confirms beyond a doubt that the Indian government needs to further strengthen intellectual property protection. In this area India is losing ground to other emerging Asian economies and the government ignores this at India's peril."
The ineffectiveness of patent laws, the continuing lack of data exclusivity, and a lack of expedient and effective enforcement mechanisms are causing the country to lose out when it comes to investment in R&D, the survey said.
The US-India Business Council was set up in 1975 under the aegis of the US Chamber of Commerce, which represents more than three million businesses and organisations.
