Global ratings major Fitch's India unit, India Ratings, on Thursday asserted that foreign investors are convinced about India's growth potential and that much of the investments would start pouring in after general elections.
"There are some investors already setting up plants here and putting money in other businesses, although there are some who have pulled back and are waiting on wings," Fitch Group's Indian unit India Ratings' CEO and Managing Director Atul Joshi said.
General elections are scheduled to be held sometime in the first half of 2014.
"These investors want to see how the reforms unfold in coming months. But most of the investors are saying that once the elections are over, we will come in. The questions are only about the timing of investment, and not about the investment as such," Joshi said.
He further said that most of the foreign investors are convinced about the growth potential available in India and they have taken a decision to invest in India.
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"That is a done deal, what they are questioning is whether this is the right time to come in, or should they wait for 12 months or 18 months and then come in," Joshi said. "These are the questions right now before most of the overseas entities planning investments in manufacturing and services sectors."
It is being debated for many months now as to whether foreign companies are not opting for India due to lack of economic reforms and uncertainty over policy matters. Joshi, however, ruled out any large scale exit of foreign investors from the country.
"If one was to simply go by the FII inflows in the last two months, the money is coming in big time. So, I don't think that FIIs are not convinced about our growth prospects," he said.
Joshi said that various estimates put India's economic growth rate for the next financial year in the range of 6-6.5 per cent, while Fitch also sees it about 6.1 per cent.
"People are still talking about economic growth, that too for an economy size of $1.8 trillion which is huge by any standards.
"If you look at any of the luxury brands from across the world, the destination is India. Who's who of the world, be it in businesses like automobile, consumer goods, luxury products, private jets, they all are coming to India as the demand is very strong here," Joshi said.
with inputs from PTI