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According to the Ernst and Young European Attractiveness Survey 2006, India is the fourth most attractive investment country in the world and most preferred location for call centres and back office functions.

India's rating in 2006 is on par with the previous year, with18% of investors electing it as key choice. India also figures at number five among the top ten countries for research and development centers. It was placed after US/Canada, Germany, and UKand France.

India has emerged as the top country for call centers with 14%of the votes. It is followed by Germany and US/Canada which have garnered 11% of the votes.

The 2006 survey is also marked by a cooling off of China's attractiveness, to the benefit of more mature locations in Western Europe. China's pull hasconsiderably reduced since the European Attractiveness Survey in 2005 where it garnered 52%of the votes as against this year's 41%. While SMEs still prefer China (46%) there has been a decline in the level of interest expressed by multinational corporations: 38% when compared with last year's 58% however China still maintains the lead position for manufacturing operations with 18% votes. It has to be noted that the survey -Globalisation Act Two: Team Europe Defends its Goals mentions that India shows few signs of being able to compete with China as an FDI destination.

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