Geneva-based World Economic Forum (WEF) on Wednesday said that India needs to invest in its foundations to attract more foreign investors.
In an interview to CNBC-TV18, Thierry Geiger, head, benchmarking practice, said, "It looks like the global economy is coming at the end of the business cycle and bracing for a slowdown. What we see is that there is a vast competitiveness deficit in the world. A lot of our structural foundations of economic growth are not in place and this does not board well for the upcoming slowdown. On top of that, there is this very difficult geopolitical context with the trade tensions which fuels the uncertainty."
"India is an interesting case when it comes to competitiveness. The corporate tax cut highlights the fact that India is already quite dynamic and has a vibrant business culture. Our country has some major weakness that cannot make up for the innovation capability which is well above India's peers," he added.
He further added, "India remains a prime destination for investment. However, in the current context where investors are quite reluctant to invest and we see a decline in FDI worldwide. Investors are looking for stability, predictability, educated workforce and the next China."