India is increasingly being viewed as a standout destination as a new report by PwC shows that India has risen sharply in global investor preference, now
ranking as the second-most favoured country for international investment, tied with Germany and the UK, and behind only the United States. The findings from the report shows a notable shift in global boardroom sentiment, with India moving firmly into the top tier of investment destinations amid lingering uncertainty in many developed economies. The report states that as recently as 2025, just 7 per cent of global CEOs identified India as a priority market for capital allocation, placing it fifth globally. That share has nearly doubled to 13 per cent, which led India towards the joint second position. Indian CEOs More Upbeat On Home Growth The report states that the optimism among Indian business leaders remains notably stronger than the global average. According to the report, 77 per cent of Indian CEOs expect domestic economic growth to improve over the next 12 months, compared with 55 per cent of global CEOs forecasting growth in their own economies. This confidence has increased from 76 per cent a year earlier, showing a sustained belief in India’s trajectory. However, only 45 per cent of Indian CEOs anticipate an improvement in worldwide growth, which is significantly lower than the 61 per cent figure reported by global peers, highlighting caution around international conditions. Revenue Confidence Sets India Apart Revenue expectations further distinguish India from other major markets. About 57 per cent of Indian CEOs say they are “very or extremely confident” about revenue growth in the coming year, nearly double the global average of 30 per cent. Over a three-year horizon, confidence remains elevated at 55 per cent, versus 49 per cent globally. India also outperforms economies such as the US, UK, China and Germany on short-term revenue confidence. The report notes that India has become the second-largest private equity and venture capital market in Asia-Pacific, accounting for nearly 20 per cent of the region’s private capital in 2022. Reforms, Demand And Market Scale Drive Appeal PwC attributes India’s growing appeal to multiple structural factors. The Indian economy is projected to expand by 7.4 per cent in FY26, led by the manufacturing push and rising investment. India’s long-term sovereign credit rating has been upgraded to ‘BBB’, marking its first improvement in 18 years. Policy initiatives such as production-linked incentive schemes, GST refinements and proposed labour codes have also increased investor confidence. In addition, the Jan Vishwas (Amendment of Provisions) Bill, 2025, which seeks to decriminalise 288 provisions and amend 355 others, is aimed at improving ease of doing business.
