India continues to be among the top ten countries in terms of foreign direct investment (FDI) inflows globally and the fourth in developing Asia, as per the World Investment Report 2016 by the United Nations Conference for Trade and Development (UNCTAD). India’s FDI inflows have increased to $44 billion in 2015 as compared to $35 billion in 2014, and the growth has been across the board.
A surge in investments in the first four months of 2016 is mainly on account of the Make in India initiative, along side liberalization measures and reforms initiated by the National Democratic Alliance, which make India an attractive investment decision.
The huge potential offered by India, the fastest growing major economy, is also one of the main reasons. To be sure, China with more than three times India’s FDI at $136 billion in 2015 is ranked third in terms of FDI flows among all countries. Globally, FDI activity has increased by 38%, in a signal that a revival in investment sentiments is on the cards.