India has emerged as the world’s second-most attractive business environment for multinational corporations, highlighting the country’s growing appeal amid rising geopolitical tensions and global economic uncertainty, according to the World Economic Forum’s latest study.
The findings were published in the Chief Economists’ Outlook for May 2026, released at a time when supply-chain realignments, conflicts and mounting inflationary pressures are disrupting the global economy. Despite these challenges, India was identified as a leading destination for multinational corporations, ranking ahead of Europe, China and other major regions, and second only to the United States.
In a survey of 38 chief economists from leading international organisations, 56% of respondents ranked India among the top three most attractive business environments for the next 12 months.
Only the United States scored higher, with 65% support. South-East Asia followed at 50%, while Europe and China received 44% and 35%, respectively.
The report attributed India’s strong position to its combination of market size, economic growth and policy support. It said New Delhi had expanded market access and maintained an active economic policy approach while continuing to create new opportunities for trade and investment.
The WEF said India’s pursuit of new trade agreements, deeper international economic integration and growing embrace of free trade were key factors underpinning investor confidence.
According to the report, multinational companies are reassessing investment destinations as geopolitical risks reshape traditional perceptions of economic attractiveness.
It noted that businesses are increasingly prioritising resilient markets capable of withstanding global uncertainty, with scale, strategic flexibility and supply-chain positioning becoming more important than headline growth alone.
The United States retained the top position due to its deep capital markets, large consumer base and continued investment in data centres and artificial intelligence infrastructure. India, meanwhile, stood out among emerging markets for balancing economic potential with policy support.
