India has "better investment climate" than other BRIC nations even as regulatory and tax system-related challenges are impacting immediate investment plans, says a survey of top executives of German companies.

More than 90 CEOs and CFOs from leading German high-tech companies participated in the survey done by global consultancy EY and research firm Delphi.

Investors recognize India's market growth, large market size and efforts to attract FDI while the perceived obstacles, are its infrastructure, administration and regulation, the study said.

"India currently offers a better investment climate than other BRIC countries," the report said while adding that German companies are favourably inclined to invest in the Indian high-tech market.

BRIC comprises four countries -- Brazil, Russia, India and China.

"94 per cent of the surveyed CEOs and CFOs from leading German high-tech companies stated that India currently offers a better investment climate than other BRIC countries," it said.

The study has combined insights from expert interviews with existing market and economic data.

Delphi interviewed the top executives from German high-tech companies that are already operating in BRIC economies or are considering investments in the near future.

According to the study, several perceived challenges have been identified across all high-tech manufacturing sectors and investor groups, including companies starting a business, already operating in India and potential investors which operate in other BRIC countries.

They would require, among others, "improvement in infrastructure, simplification of regulatory procedures, liberalisation of FDI and simplification of the tax system".

As per the study, Indo-German collaboration in high-tech manufacturing can become an important part of the 'Make in India' initiative.

"Out of 13 high-tech Manufacturing sectors analysed, seven offer greatest convergence for Indo-German collaboration," it noted.

Automotive, civil aviation and airports, transportation infrastructure, water; renewable energy and heavy engineering are among the seven sectors.