New Delhi, December 3:

India, with a growth of over eight per cent per year, is emerging as the most preferred destination for foreign investors, a survey by a leading business chamber says.

In a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), 83 per cent of foreign firms are considering expansion while 71 per cent hope the country will surpass the eight per cent gross domestic product (GDP) growth by March 2007.

A majority of foreign investors have achieved their growth target set for their India business, said the survey, adding that 91 per cent of the companies making profits have been able to meet their profitability targets.

With more and more companies bringing in their assembly lines and setting up manufacturing units here, India is becoming a coveted place for investments.

India, with its young population, is an attractive destination for investment in comparison to other developing countries including China, where the one-child policy has resulted in an older workforce. The perception of India as a manufacturing base has improved over the last two ye-ars, with 48 per cent of foreign fir-ms rating India as an attractive manufacturing base. In the first quarter of the current financial, the manufacturing sector grew by 11.3 per cent, yielding India’s hig-hest first-quarter growth of this decade, pegged at 8.9 per cent.

However, the survey points out that there are a number of serious challenges that are slowing down the economy including a visible shortage of skilled and qualified manpower and infrastructure problems.

Record high

NEW DELHI: Last week, India posted unexpectedly strong second-quarter economic growth of 9.2 per cent, powered by a surge in manufacturing and services, and the Mumbai stock market index, the Sensex, streaked to a record high of 13,844.78. “India is in take-off mode,” said Harish Fabiani, director of the Indian advisory arm of global investment firm Americorp Capital, who attended a three-day long India summit of the WEF in New Delhi last week. — HNS