The results showed a move away from investments in the US, Japan, Singapore and the UAE, and a big increase in flows to Brazil, Russia, China and India (BRIC).
"As investments go global, the smart money is increasingly finding its way from the traditional investment destinations of US & Europe to the BRIC countries. The more recently recognised India opportunity is reflected in the fact that a significant amount of investment into India in the next five years is expected from first time investors. The expected increase of Indian investment in the Middle East reflects the proximity and the opportunity created from the oil price led wealth effect. India must continue to build on its investment climate to monetise this sentiment." said CEO, Russell Parera, KPMG India.
Commenting on the findings of the survey, Head of Tax and Regulatory Services,Sudhir Kapadia, KPMG India, said, "This trend-setting KPMG survey validates anecdotal evidence suggesting a major shift of capital flows from the USA, Japan and other European countries to the BRIC countries in the next 5 years."
"It is significant to note while 10 per cent of the companies surveyed expect to invest in India currently, the number will go up to 18 per cent in five years, the biggest gain amongst all other BRIC countries." Kapadia said an increasing proportion of investments will flow into industrial products and manufacturing in India. Sixty four per cent of the investment into India is expected to come from new entrants to the country, he added.