Passage to India! Polish investors cast their eyes towards India
A new report published by the Polish Development Fund (PFR) and PwC has revealed the most potentially attractive countries for Poles to invest in.
India tops the rankings followed by Malaysia in second and Romania in third. There are 13 European countries inside the top twenty, while Chile, ranked fourth, is the only country from the Americas to make the shortlist.
The report, published by the Polish Development Fund (PFR) and PwC, has revealed the most potentially attractive countries for Poles to invest in.
Thailand and South Korea are the other Asian countries to make the list, while further afield Australia also features on the rundown.
Piotr Kuba, CIO at PFR TFI, said: “Foreign capital expansion, and more specifically outgoing foreign direct investments, is a natural stage in the development of Polish companies. After years of export activity, Polish companies are showing more and more interest in the capital form of foreign expansion.
Currently, 90.8% of Polish investments stay within Europe’s borders. However, as the report outlines, this stands to change dramatically.
“Enterprises are aware that they can develop globally, especially in non-European emerging markets,” he continued. “I am convinced that in the coming months there will be many interesting foreign investments.”
Of the PLN 96.5 billion that was invested abroad in 2019 – a year-on-year rise of PLN four billion – Luxembourg saw the largest influx of Polish capital (PLN 19.2 billion), while 90.8% of Polish investments stayed within Europe’s borders. However, as the report outlines, this stands to change dramatically in the coming years as Poles seek out other markets.
“I am convinced that in the coming months there will be many interesting foreign investments,” says Piotr Kuba.
In particular, India was highlighted as the most appealing of these due to the rapid growth of its domestic market; in the last five-years, the country’s GDP has swelled to register growth of between 4.2% and 8.3%.
Meanwhile, Foreign Direct Investment has surged from USD 282.6 billion in 2015 to USD 426.7 billion in 2019, indicating that India is becoming more attractive and open to foreign money.
India is expected to become the world’s third largest construction market by 2025
Ada Dyndo, of the Polish Investment and Trade Agency, tells TFN: “Polish investors should look at India as an alternative manufacturing hub to China. India offers a large, growing domestic market, English-speaking, skilled and semi-skilled labour at comparatively lower costs, rapidly improving digital infrastructure and attractive incentives for companies making new investments in certain identified sectors.
“The Indian government has made it a goal to attract foreign investors as part of a strategy announced by PM Modi in May 2020,” she adds.
“India offers a large, growing domestic market, English-speaking labour at comparatively lower costs, improving digital infrastructure and attractive incentives,” says Ada Dyndo.
The report named India as the top country for manufacturing and also construction. The country was ranked third for trade, eighth for consumer goods and ninth for its IT industry.
Dyndo, the Head of the Foreign Trade Office in Mumbai, continues: “Polish IT, AI and new technologies companies already have a significant presence in India after partnering with Indian companies or setting up their offices in the Indian biggest cities.
According to Dyndo, PM Modi has made it a goal to attract foreign investors.
“Last month Klimas-Wkręt launched its office in Pune. The company is a leading producer of the highest quality fastening technologies. They chose India to set up their first office in Asia after considering all the business opportunities the market offers.”
Due to its continuing urbanization, growing population, Smart City initiatives, housing schemes, and construction industry India is experiencing a boom and, says Dyndo, is expected to become the world’s third largest construction market by 2025.
“All this makes India a promising market for Polish construction companies who are planning long term,” she says.
