It’s payback time for PM Modi’s critics, who were restless on the real progress and growth trajectory of Indian economy.
Financial Times have declared that India is now world’s top FDI destination, as we attracted $31 billion from foreign investors during the first half of 2015. Thereby, we have overtaken US and China in this department. China received $28 billion of FDI, while US received $27 billion during the same period.
FT’s report on global FDI growth says, “A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US.”
This report was forwarded by Finance Ministry to showcase India’s remarkable growth in attracting FDI, especially in 2015. Compared to last year, FDI in India has increased by 47%, which has broken all records.
This new found confidence in India’s economy becomes more fascinating when 97 out of 154 ‘emerging economies’ received less FDI and less confidence from foreign investors!
Here are the Top 10 FDI Destinations
PM Modi Effect?
Financial observers are clear on this one: It’s PM Modi’s whirlwind tour of foreign countries, which have an important role in this surge of FDIs. In 2015, PM Modi has already visited 25 countries, propagating India’s new development story.
The countries where PM Modi visited in 2015: Australia, Bangladesh, Bhutan, Brazil, Canada, China, France, Fiji, Germany, Ireland, Japan, Kazakhstan, Kyrgyzstan, Mauritius, Mongolia, Myanmar, Russia, Seychelles, Singapore, Sri Lanka, South Korea, Tajikistan, Turkmenistan, United Arab Emirates, Uzbekistan.
Although some of these visits were mainly due to humanitarian purposes (for example Nepal visit); most of these trips triggered positive response from the investors, who wholeheartedly trusted in PM Modi’s pitch for a new, developed India.
Other Emerging Asian Economies
Besides India, the report mentions the fast growth of Indonesia and Vietnam in their report. Indonesia has witnessed record growth of 62% in receiving FDI, as $14 billion was pumped into their economy during H1-2015. This year, they are ranked #6, after they broke into top 10 ranking last year.
Brazil was the country which witnessed massive erosion of FDI this year, but still holds on to #9 spot.
You can find the FT report titled: ‘India grabs investment league pole position’ here.
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