Even as the recent spate of scams have dented India’s image among global investors, German companies are resolute to expand their operations in the country by making more investments and hiring more people in the coming years, a survey conducted by the Indo-German Chamber of Commerce (IGCC) revealed.
According to the survey, conducted among 175 German companies in India, German investors have shown confidence in India’s growth story and have indicated their bullishness about its long-term prospects.
Notwithstanding the soaring interest rates and inflation, companies have said India’s gross domestic product (GDP) is likely to rise eight-nine per cent in 2011-12.
A whopping 70 per cent of the companies surveyed saw average growth rates staying above eight per cent over the next three years, while 16 per cent felt it would be above nine per cent. Only six in every 100 companies saw a weaker performance.
Interestingly, eight out of 10 managers forecast India’s growth rate to catch up with or even exceed China’s within this decade, while 93 per cent did not consider reducing or deferring planned investments over corruption or policy concerns.
Around 37 per cent said they would consider re-assessing India’s investment risks due to policy or governance deficits.