India Overtake China as Top FDI Destination – Report
How are foreign investors reacting to the turbulent global economic recovery?
The headline finding of The fDi Report 2016 – the annual assessment of crossborder investment based on the fDiMarkets service from the Financial Times – is that sustained greenfield foreign direct investment (FDI) continued its tentative recovery in 2015.
The fDi Report 2016 reveals that greenfield capital investment increased by nearly 9% however the number of FDI projects declined by 7%. Key FDI trends spotted include:
- India overtakes China as the top global destination for FDI.
- Global FDI forecasted to decline by at least 5% in 2016.
- Financial services sector sees one of the largest declines – FDI project numbers falling 28.7%.
- The Middle East and Africa generated $59.8bn of outward capital investment.
India has replaced China as a top destination for foreign direct investment by attracting $63 billion worth FDI projects announced in 2015, says a report.
Also, there was an 8% increase in project numbers to 697, according to fDi Intelligence, a division of The Financial Times.
Major companies such as Foxconn and SunEdison have agreed to invest in projects valued at $5 billion and $4 billion, respectively, in India in 2015, it said.
India replaced China “following a year of high-value project announcements specifically across the coal, oil and natural gas and renewable energy sectors”, the report said.
“In 2015, India was for the first time the leading country in the world for FDI, overtaking the US (which had $59.6 billion of greenfield FDI) and China ($56.6 billion),” the report noted.
In a tweet, minister of state for finance Jayant Sinha said: “India emerges on top in attracting FDI”.
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. Maharashtra has been one of the strongest performers across the years attracting $8.3 billion in 2015. agencies