India is still a favourite FDI destination.
- According to United Nations Conference on Trade and Development (NCTAD) report India continues to be a favourite FDI destination though tax-related concerns remain a deterrent for some foreign investors.
- The favorite destination for FDI are US ,China and India.
- India will remain among the top three investment destinations globally till 2019.
- India ranked 10th in terms of FDI inflows in 2016, with $44 billion coming in, as in 2015.
- FDI outflows from developed countries decreased by 11 per cent, mainly owing to a slump in investments from European multinational enterprises.
- The US remained the largest recipient of FDI, attracting $391 billion in inflows, followed by Britain with $254 billion, and China with inflows of $134 billion.
- Last year China stood second in terms of getting Foreign investments.
- Global foreign direct investment (FDI) is expected to rise by 5%, to almost $1.8 trillion in 2017.
- The foreign outflows from South Asia declined by 29 per cent to only USD 6 billion in 2016, as India’s outward FDI dropped by about one third, it added.
- Cross-border merger and acquisition deals have become important tools in the hands of the foreign multinational enterprises to foray into the rapidly-growing Indian market.
BRICS – the economic group comprising Brazil, the Russian Federation, India, China and South Africa accounted for 22 per cent of global GDP but received only 11 per cent of global inward FDI stock in 2016. FDI flows to the five BRICS countries last year rose by 7 per cent to USD 277 billion. The increase in inflows to the Russian Federation, India and South Africa more than compensated for the decline of FDI to Brazil and China.