India Trumps China and US to become no.1 in FDI flows

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FDI in India

According to a report published in Financial Times, London that said “India grabs investment league pole position”. India has emerged as no. 1 position with $31 billion of FDI in H1 2015, ahead of $28 billion of China and $27 billion of US.

“A ranking of the top destinations for Greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US,” the FT report said.

India has attracted more than doubled its FDI levels with $31 billion of FDI in H1 2015  compared to first half of last year figures of $12 billion.

FDI in India_thinkomania

How this has been made possible

1) New Government initiatives:

The Government has taken several steps to attract foreign investment and has helped revive mood of investors since it came to power in May 2014.

Despite political barriers, the government has unveiled several initiatives such as ‘Make in India’ and ‘Digital India’ to lure foreign investors. It has moved to ensure that the country moves up the ranking on the World Bank’s Ease of Doing Business and states have started their clean-up act on this parameter. India has also moved up on Global Competitiveness Index by 16 places to 55th position.

The Government has also initiated the process to introduce reforms like tax policy, labour laws, cutting red tape for investment.

Investors have started taking an interest in the India growth story and the recent visit of Modi to Silicon Valley triggered enormous interest from software and technology czars.

2) Benefit of China Slowdown”

Experts say India being net importer of global commodities is expected to benefit from the slowdown in China and the overall sluggishness in global commodity prices including crude oil which improves the macro environment of Asia’s 3rd largest economy.

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