Professional services firm Ernst & Young predicts that foreign direct investment into India will continue to rise over the next few years.

Foreign investment in the country rose for the first time in three years last year as investors placed confidence in a growing middle class, rising salaries and an inexpensive labour force. However, the report also noted the impediments to investment, including lack of transparency, poor existing infrastructure and government obstructionism.

Overseas investment in Asia’s third-largest economy rose 13% to $50.81 billion in the first 11 months of 2011 from 2010. Similarly, using data taken from the Financial Times’ FDI Intelligence service, the report said the total number of investment developments rose 25% to 864 last year.

India’s economy has been growing rapidly due to the fundamentals listed in the report. Globalisation and increased trade with Europe and the West has made translation services a key part of India’s economy.

Businesses in the region heavily rely upon interpreters to translate documents, websites and financial data. With more foreign direct investment predicted for the coming years the importance of translation services is only likely to increase.