India has secured ninth position in the 2016 Foreign Direct Investment Confidence Index. The ranking has been released by a global management consulting firm named AT Kearney. The firm has underlined that the country is “finally” embarking on a growth path that will see it “unlock its full potential”. India jumped two places to rank number 9 in this year’s AT Kearney Foreign Direct Investment (FDI) Confidence Index.

India has emerged as the fastest growing economy in the world, surpassing China as well as Brazil, Russia and South Africa, the other members of BRICS. The Index of a London-based consulting firm is a forward-looking analysis of how political, economic, and regulatory changes will likely affect FDI inflows into countries in the coming years. The Index is constructed using primary data from a proprietary survey administered to senior executives of the world’s leading corporations.

In this year’s survey, 32 per cent of the respondents said they were more optimistic about India’s economic outlook over the next three years, compared to a year ago. The results of the Index also show that domestic market size, cost of labour, regulatory transparency and lack of corruption are among the top factors that executives look at when making decisions about investing in a country.

Rankings of Other Countries

The US and China hold top two positions for fourth straight year. Canada ranked at third position. Germany secured fourth position. The UK, Japan, Australia and France secured the fifth, sixth, seventh and eighth position respectively. Singapore secured the tenth position.

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