Why India Is A Top FDI Destination

By: Natasha Mahesh, 2016-04-22 13:45:00.0Category:  Awareness
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    • India, for the first time is the leading country in the world for FDI. According to Financial Times, it has overtaken the US (which had $59.6 billion of greenfield FDI) and China ($56.6 billion)

      • India is currently one of the fastest growing major economies in the world and is considered to be a bright spot by international agencies, including the International Monetary Fund. Prime minister Narendra Modi is also pushing to increase manufacturing in the country. On the other hand, China is battling slow economic growth, overcapacity, and high debt. Beijing is adding to the debt to ease the slowdown. In February, the country announced a massive layoff of 1.8 million workers to downsize its coal and steel industries. Because of a weaker yuan and a slowing economy, an estimated $1 trillion moved out of the country in 2015 (which is the highest in the past decade).

      • According to Financial times, an increase in the number of investment projects in coal and power in India helped the country surpass China. The number of projects in the country rose 8% to 697 in 2015 over the previous year. This is still lower than China’s (789 projects) which indicates that the value of investments was much higher in India.

      • Major companies such as Foxconn and SunEdison have agreed to invest in projects in India that are valued at $5 billion and $4 billion, respectively.

      • Of the top 10 destination states for FDI in 2015, India claims five places, with the top place going to Gujarat, which attracted $12.4 billion. In addition, Maharashtra has been one of the strongest performers across the years attracting $8.3 billion in 2015. 

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      Sources from Quartz India

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