Due to the surge of investments in the first four months of 2016, India remains in the top ten countries attracting foreign funds, according to the United Nations Conference for Trade and Development’s new World Investment Report 2016. In 2015, India reached a high of $44 billion in foreign direct investments as against 2014’s $35 billion—this is an eight-year high.
In the quarter ending March, the increase in inflows is attributed firstly to Prime Minister Narendra Modi’s ‘Make in India’ push. Secondly, the country’s new economic reforms are attracting investors. Last, India has proved to be the bright spot among emerging economies with its growth rate of 7.6% in 2015-16. Investors are looking at India as an alternative to China. China’s FDI inflows hit $136 billion in 2015; it is ranked third.
India receives FDI from Singapore, Mauritius, the US, Netherlands, Japan, Germany, the UK, China, Hong Kong and the United Arab Emirates, in this order, said a UN official. Singapore and Mauritius account for nearly three-fifth India’s total investment.
Globally, FDI activity has increased by 38% to $1.76 trillion, according to the report.