India surpasses China, USA to take the prime position in FDI

India has emerged as the top destination for Foreign Direct investment (FDI) as compared to China and the United States in the first half of 2015, according to Financial Times.

The report said India has attracted USD 31 billion of FDI in H1 2015, ahead of USD 28 billion of China and USD 27 billion of US.

In contrast to India, 97 of 154 emerging economies reported a drop in capital expenditure on greenfield projects in the first half of 2015 from a year earlier, according to fDi Markets.

If PM Modi’s charms are attracting foreign investors in India, it has to be supported by changes on the ground also, and he will do well by finding ways to convince other political parties, that obstructions to the necessary reforms like the goods and services tax (GST) and hamper this process.

“The jump in India’s position underlines the country’s recent economic recovery, improvement in the competitiveness of the country’s institutions and its macroeconomic environment and a slight improvement in infrastructure”, the WEF said in its latest Global Competitiveness Report. India is now ranked 142nd among 189 nations in the World Bank’s “Ease of Doing Business 2015” study. “India has seen a huge surge in FDI inflows and this is largely because this government has opened up vast sectors”, department of industrial policy and promotion (DIPP) secretary Amitabh Kant said here.

“In a year when many major FDI destinations posted declines, India experienced one of 2014’s best FDI growth rates, increasing its number of projects by 47 per cent”, the newspaper report said.

Experts say, lot of red tapism has been cut and the government have made things extremely easy.