"Also, introduction of GST should entail a reduction in overall process on account of reduced tax costs," it said.

The ASSOCHAM-EY report suggested that central and state governments need to work in tandem by executing investor friendly policies to further strengthen the investment prospects.

"The government is continuously focusing on improving the business environment in the country, but there is still significant scope to attract further investments," it said.

Highlighting that a complex legal framework makes investors wary of investing in an otherwise promising market, the study suggested that government must urgently carry out effective judicial reforms.

It also stated that factors like robust domestic consumption, investor-friendly strategies, skilled manpower, transparency in Government procedures and responsive policy making, with an immediate focus on effective implementation of reforms, will continue to position India as a preferred investment destination.

END