India is in the list of top five countries for global investors because of low labour cost and significant talent pool, but companies step back after assessing the infrastructure and regulatory frameworks here, said a senior executive at a global consultancy firm.

“Several of my clients in industrial sectors are looking for new sources of supply and India is typically on that list. However, many of these companies after their assessment feel that infrastructure is not ready or strategically its not the right time or the right place and they end-up going somewhere else. So India needs to work on improving the conditions for companies to set up here,” Claudio Knizek, Global Advanced Manufacturing and Mobility Leader, EY-Parthenon, Ernst & Young’s global strategy consulting arm, told BusinessLine.

In two-wheelers, India is absolutely in a leading position, but in passenger cars, it still has way to go, he said. But the Indian automobile industry is going in the right direction, he added.

“I am encouraged by what I see...I am not close enough to the market here, but I love the fact that there’s a lot of interest, and there’s a lot of ambition and that’s important. And, that tends to drive a lot of progress,” Knizek said.

“It’s made great strides and has become a more attractive manufacturing location. But it’s not there yet. I think India is very well known for services, as a leader there, but I think on the other manufacturing front, the country has made a lot of infrastructure improvements...but I think in terms of establishing itself as a global hub for exports, I think more work needs to be done.”

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