70% foreign cos operating in India are making profits: Ficci

Around 70 per cent of the foreign companies operating in India are reportedly making profits and 84 per cent have a "positive" assessment of India.

However, investors have highlighted the need of building brand India so as to attract more investors riding on its brand equity, stated a study by FICCI.

According to the press release, the industry association's annual FDI survey shows that an overwhelming 91 per cent were satisfied with the operational parameters, upbeat about the market conditions and the potential for additional FDI inflows but they also expressed concerns about the quality of infrastructure.

Despite the positive outlook, the study points to thorny issues like "inflexible labour laws, incidence of indirect taxes and multiplicity of procedures which act as hindrances to India's attractiveness as a manufacturing base or an export platform".

Majority of foreign investors have rated the policy, legal and regulatory framework as "average to good" while they acknowledge India's vast pool of skilled human capital, stated the release.

Out of the 84 per cent respondents who were planning to expand their business in India; 90 per cent considered the IT and BPO services to be one of the most lucrative sectors for investment.

FICCI has also identified seven 'promising FDI spinners' in electrical equipment, chemicals, electronics, banking, IT, auto components and textile amongst other sectors.

Elaborating on the methodology, the release added that the survey was conducted across a wide range of activities in all types of organisations including banking, finance, IT and BPO, chemicals and agricultural product companies.

Out of these, around 22 per cent respondents were companies with annual turnover of more than Rs 500 crore and thirty per cent were companies having turn over between Rs 100 crore and Rs 500 crore.