India’s Economic Climate Just Right for Manufacturing: Julie Teigland

Julie Teigland, managing partner, EY (Europe, India, the Middle East and Africa), said that Indian manufacturing is back on track enabled by the government support, increase in investments by MNCs, and geopolitical conditions favoring the country.

“For years, the Indian economy was driven largely by professional services. I can see the manufacturing component coming through as India has all the ingredients: the right talent, a government that's driving reforms, and technology. These are solid foundations. Amid geo-political flux, India has a huge opportunity to gain more parts of the value chain,” said Julie.

Despite the challenges present and the ongoing COVID-19 crisis, the government has focused on multiple areas at once to make the Indian manufacturing sector competitive. Initiatives like the production-linked incentive (PLI) scheme, a favorable tax system, low real interest rates, and reforms to enhance ease of doing business have contributed significantly in augmenting investor interests.

Teigland said that EY FDI attractiveness studies show that India is the fifth-strongest market globally after the US, the UK, China, and Germany. Foreign direct investment (FDI) worth $54.1 billion entered India during the period April-November 2021-22.

“The attraction of India as an FDI destination is actually increasing with so many private equity and venture capital funds looking to invest more in the country. There's been a terrific focus on the right level of reforms to promote a business community with the right economic foundations,” said Teigland.

Through initial public offerings (IPOs), 63 Indian companies raised Rs. 1,18,704 crores in 2021, while startups raised $42 billion in the same year.

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