BANGALORE: INDIA: India is likely to see the largest growth in its share of foreign investment overall, and should become the world leader for investment in manufacturing.

"As investments go global, the smart money is increasingly finding its way from the traditional investment destinations of US and Europe to the BRIC countries. The more recently recognised India opportunity is reflected in the fact that a significant amount of investment into India in the next five years is expected from first time investors. The expected increase of Indian investment in the Middle East reflects the proximity and the opportunity created from the oil price led wealth effect. India must continue to build on its investment climate to monetise this sentiment." said Russell Parera, CEO, KPMG in India.

The results showed a move away from investments in the US, Japan, Singapore and the UAE, and a big increase in flows to Brazil, Russia, China and India (BRIC).

Commenting on the findings of the survey, Sudhir Kapadia, Head of Tax and Regulatory Services, KPMG in India, said "This trend-setting KPMG survey validates anecdotal evidence suggesting a major shift of capital flows from the USA, Japan and other European countries to the BRIC countries, in the next five years. It is significant to note while 10 percent of the companies surveyed expect to invest in India currently that number will go up to 18 percent in five years-the biggest gain amongst all other BRIC countries. Further, an increasing proportion of investments will flow into industrial products and manufacturing in India. Interestingly, 64 percent of the investment into India is expected to come from new entrants to the country."

He further adds: "It is clear that India has the potential to play an even more influential role in flow of capital and it's a great opportunity for India to further improve the economic and fiscal climate and proactively attract and retain investments in its growing economy. Indeed, India Rising is all set to fulfill its tryst with destiny that Nehru spoke about in his historic 1947 Independence speech and occupy its rightful place in the comity of nations"

These conclusions come from a global survey of corporate investment plans carried out by KPMG International. Corporate investment strategists from over 300 of the largest multinational companies in 15 major economies were asked where they plan to invest in the next 12 months and in five years' time.

They were also asked which countries they saw as dominant in their sector today, and which they expected to be dominant in 2013/14.