India is world No. 1 in FDI, a big boost for PM Narendra Modi

India is world No 1 in FDI a big boost for PM Narendra Modi pardesi news 1459247718

India has emerged as the most favoured destination for foreign direct investment (FDI) in 2015, piping China and America

India has emerged as the most favoured destination for foreign direct investment (FDI) in 2015. According to a report produced by London-based business daily Financial Times (FT), India became world No. 1 in FDI with deposits of $30 billion.

India has outpaced China and America, to emerge as the top FDI destination globally.  FDI inflows into India during the first half of 2015 stood at $31 billion, compared with $12 billion in the first half of last year, also ahead of China’s $28 billion and the US’s $27 billion, said the Financial Times (FT) report under the headline ‘India grabs investment league pole position’. The FT report says, “A ranking of the top destinations for greenfield investments (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 bn more than China and $4 bn more than the US”

The report also says, "research from FDI Markets found 97 of 154 countries typically classed as emerging markets experiencing declines in capital expenditure on greenfield investment projects in the first six months of this year compared with the same time period last year". 

Separately, India also jumped 16 ranks to 55th position among the 140 countries list in the World Economic Forum’s Global Competitiveness Index, which ranks countries on the basis of various parameters such as institutions, macroeconomic environment, education, market size and infrastructure, etc. 
The news comes as a shot in the arm for the Narendra Modi led government, which has taken several steps to attract the foreign investment and also reviving mood of investors, ever since it came into power in May 2014. Investors worldwide have been impressed with Indian growth story, even the recent visit of Modi to Silicon Valley triggered enormous interest from software and technology czars, worldwide. The Modi government’s continuous push for manufacturing comes at a time several global companies are searching for an alternative to China, slowdown in Chinese economy,  the overall sluggishness in global commodity prices including crude oil,  initiatives such as Make-in-India campaigns, to make the country more investor-friendly, removing the bureaucratic hurdles, are some of the plausible reasons for India to emerge as the most favoured destination in FDI. 

The analysts also suggest that the Indian government must now quickly capitalize on this good news on the FDI front to strengthen its growth story by finding ways to facilitate the much-needed reforms.

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Patrick Callahan

Pardesi News Reporter

Pardesi News Reporter

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