New Delhi, Nov 25 (KNN) With the sharp depreciation in currency and opening up of Foreign Direct Investment (FDI) in various sectors, India has emerged as the most attractive investment destination leaving US and China behind, said a study by global professional services firm Ernst & Young (EY).

EY's ninth bi-annual capital confidence barometer, based on a survey of 1,600 senior executives across more than 70 countries, has ranked India as the most attractive investment destination followed by Brazil, while China is at third place.

However, Canada is at the fourth spot and US has moved to the fifth position. Other nations in the top ten are South Africa (6), Vietnam (7), Myanmar (8), Mexico (9) and Indonesia (10).

The top three investing countries into India are the US, France and Japan.

As far as sectors are concerned, those with the highest level of anticipated deal-making include automotive, technology, life sciences and consumer products. 

According to the global consultancy firm, due to the present macro-economic pressures and heavy debt pile, several Indian companies are looking to divest non-core businesses.

"This has created a large opportunity for foreign players vying for a greater role in the Indian market," it added.

FDI from the US, France and Japan during the period April 2000 to August 2013 were at Rs 53,673 crore, Rs 17,718 crore and Rs 71,870 crore, respectively. 

The survey also pointed out that 38 per cent of the respondents feel that Merger and Amalgamations (M&As) volumes in India are expected to improve over the next 12 months, while 30 per cent believe that these will remain stable.

"The investor outlook for India remains positive, despite the challenges the country's economy has faced in the recent past. At the same time, the improved condition of the world economy has helped increase confidence amongst deal makers, prompting them to take a bolder stance toward executing transactions," said National Leader and Partner - Transaction Advisory Services, EY, Amit Khandelwal. 

The report also said that after two years, European countries (Britain and Germany) have made a comeback on the potential investment destinations list for Indian companies.

Global executives' sentiments have improved it said, specifically regarding plans for acquisitions and deals, and are at a two-year high with credit and cash available for deals.
Meanwhile, the report also said that Indian corporate entities have started looking at developed markets for making acquisitions. (KNN/SD)