Foreign investors are considering increasing their presence in India despite various persistent business challenges, global consultancy firm Ernst & Young (EY) said in its latest report.

EY polled a total of 502 global investors, and found that more than half (53.2 per cent) of the respondents were considering stepping up their investments in India. Of those who have plans to make investments in India, nearly 58 per cent are planning to expand their existing operations.

In its recently published survey report, the consultancy also said that low labour costs and the huge size of market are two of the biggest attractions for foreign investors. A whopping 86 per cent said they regarded India's low labour costs as the greatest attraction.

Rajiv Memani, a managing partner at EY India, said foreign investors would likely consolidate their existing presence in India in the short term as the country would soon get a new government.

Speaking on the topic, Memani added, "2014 will be decisive for new players as the election results come in and expectations are formed in terms of sustaining the pace of reforms and deregulation."

Though the survey showed that India continues to be an attractive destination for global investors, yet it is a matter of fact that many investors are concerned over poor infrastructure, unfriendly business climate and uncertainty ahead of the upcoming general elections.