Global CEO Survey: After US, India Is 2nd Most Popular Investment Destination

As a result of the fast-evolving global economy with geopolitical shocks, inflation and disruption from technology, one question seems to dominate discussions in all boardrooms around the world: Where should the next dollar of investment go?

The latest global CEO survey seems to present a stark answer to this question: After the US, India is now the second most popular investment destination for global corporate leaders, a major milestone that indicates a structural change in global investment patterns.

Such developments do not happen by chance. It points to rising CEO confidence in India, India’s strong macroeconomic fundamentals, consistent and predictably positive policies, and the growing prominence of India in global manufacturing, technology and consumption.

In this article, we analyse the survey results, discuss whyIndia is a magnet for global investments, analyse the India economy outlook, and spell out the implications for investors, businesses, and policymakers.

 

What Is the Global CEO Survey?

Global CEO surveys are wide-ranging studies that involve major executives from different nations and sectors, designed to gauge levels of business confidence, potential future investments, perceived risks, and expectations for long-term growth.

Among the most respected and tracked surveys in the business ecosystem is the PwC Global CEO Survey, which reports the insights of thousands of global CEOs.

Since CEOs are not speculators, they are decision-makers who commit billions of dollars to build factories, acquire technology, hire talent, and enter new markets. Surveys assist in predicting potential future capital flows.

 

 

Key Highlight: India Ranks 2nd After the US

As per the latest reports, India is the second most attractive investment destination in the world, following the US. China's ranking has dropped with the growth of identified geopolitical risks and the uncertainty of regulations.  

Slower growth, the energy crisis, and an ageing population have further complicated Europe. India is the top choice as competition for investment in the emerging markets is high due to its size and stability. Simply put, global CEOs believe India is a growth engine and a strategic hedge in an uncertain world.

 

Why is India the Preferred Investment Destination?

 

1.Strong and Resilient Economic Growth 

India is one of the fastest-growing major economies. While developed markets are still worried about recessions, India is delivering strong and consistent growth. 

India’s economy is continuing to grow because of strong domestic consumption, public spending on infrastructure, and growth in the services and manufacturing industries. 

Global CEOs also think this growth is structural and long-term.

 

2. Demographic Advantage And Consumer Market

India’s young, aspirational, and urban population creates a large consumer base, long-term demand for housing, healthcare, financial services, and technology, and a big labour supply for international companies. 

India is a core revenue market for multinational companies, and not just a back-office destination.

3. Policy Stability And Reform Momentum 

The continuity in policies has raised the 'CEO confidence in India'. In the last few years, India has made considerable advances in public policies including:

• Implementation of the Goods and Services Tax (GST).

• Introduction of the Insolvency and Bankruptcy Code (IBC).

• Launch of the Production Linked Incentive (PLI) schemes.

• Development of Digital public infrastructure (Aadhaar, UPI, ONDC).

These policies minimise friction, enhance compliance, and improve transparency - all of which are key factors for long-term investors.

 

Global Investment Trends Favoring India

• Reduction from Extreme Concentration.

• Perhaps the most meaningful global investment trend today is diversification.

• Companies are actively moving away from extreme reliance on a single market.
  
  

Because of this, India has emerged as a natural alternative based on the following factors:

• Scale of manufacturing.

• Availability of a skilled workforce.

• Political stability and alignment with the major global economies.

 

Supply Chain Reconfiguration & Manufacturing Focus

In a world driven by the fear of disruption, Global CEOs want readily available supply chains. Predictably, India leads the way with cost-effective supply chains and is rapidly innovating.

• This is India’s investment proposition.

• Electronics

• Automobiles and EVs

• Pharmaceuticals

• Components for Renewable Energy.

 

CEO Confidence India: What the Survey Reveals

The survey shows an increase in CEO confidence in India in the following areas:

• Confidence in the growth of the company’s revenue.

• Confidence in the availability of the workforce.

• Confidence in the business regulations.

• Confidence in the ability to grow digitally and innovate.  

Furthermore, many CEOs consider India a growth market and a global capability centre in the areas of technology, research and development, and digital services.

 

India vs Other Major Investment Destinations

India vs China

China is an important world economy, but many CEOs' opinions have softened due to:

• Adverse geopolitics

• The rule of the game unpredictability

• Weaker domestic economy

Compared to China, India has a democracy, predictable laws, and a young and large population, which creates a compelling case to make an investment.

India vs Europe

Europe is experiencing:

• Ageing of the population

• More profound challenges in the world energy industry

• Slower growth of productivity.

India exhibits a counter presence with:

• Rapidly expanding economy.

• Young population.

• Growing infrastructure.

These factors contribute to India being more attractive to investors.

 

Optimism and Risks from CEOs in India

Regarding optimism, the global CEO survey illustrates the following potential risks:

• Business process concerns at the state and local levels.

• Advanced manufacturing skill gaps.

• Infrastructure completion timelines.

• Sustainability and climate risks.

• Most CEOs view these issues as manageable risks.

 

What This Means for Businesses and Investors

For Global Corporations

• India is now a must-have market for new business.

• Long-term capital deployed in India is significantly increasing.

• India-centric plans have shifted from pilot to scale.

• India is a preferred destination for global businesses.

 

For Indian Businesses

• More foreign collaborations and capital investment.

• More competition, driving efficiency and innovation.

• Greater potential to embed in global value networks.
  
  

For Investors

Increasing CEO optimism is often correlated to:

• More foreign direct investments (FDI).

• Improved corporate profit growth.

• Greater market liquidity.

This reinforces the case for new investments in India across technology, manufacturing, and infrastructure.

 

India Economic Outlook: The Road Ahead

The Indian economic outlook is constructive and selective. Major contributors to growth include:

• Expansion of infrastructure

• Digital Economy

• Manufacturing and exports

• Transition of Energy

Challenges such as global slowdown, climate risk, and volatility of commodities persist, but India’s domestic demand-led model is a source of strength and resilience.

 

Conclusion

The most recent global CEO survey confirms what markets have begun to acknowledge: India has entered a new phase in the global investment cycle. For the time being, India ranks second to the United States as an investment destination. This can be attributed to:

• Strong fundamentals.

• Strategic importance.

• Emerging global confidence.

As global investment trends shift toward resilience, diversity, and growth in the longer term, CEO confidence in India will continue. For investors, businesses, and policymakers, this is an opportunity to transform confidence into sustained economic leadership.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.