India replaces China as top FDI destination in 2015: FDI Intelligence Report

In Banking and Finance
April 22, 2016

India has replaced China as top destination for foreign direct investment by attracting $63 billion worth FDI projects in 2015. Also there was an 8 per cent increase in project numbers to 697. Major companies such as Foxconn and SunEdison have agreed to invest in projects valued at $5 billion and $4 billion, respectively, in India in 2015. Of the top 10 destination states for FDI in 2015, India claims five places, with the top place going to Gujarat, which attracted $12.4 billion. Maharashtra has been one of the strongest performers across the years attracting $8.3 billion, respectively, in 2015.

The report said the Make in India campaign and the resultant boost in FDI has resulted in a whopping increase in FDI job creation from 1.16 lakh new jobs in 2013 to 2.25 lakh in 2015 – the highest number in the world. Investments in sectors that are not under the automatic route require FIPB approval. Currently 98 per cent FDI into India comes through automatic route.

China suffered a 23 per cent decline in capital investment and a 16 per cent drop in FDI projects. Among the emerging economies, greenfield FDI inflow in India and China was followed by Indonesia (USD 38.5 billion), Mexico (USD 24.3 billion) and Brazil (USD 17.3 billion). The report said in 2015, greenfield FDI continued to show signs of recovery, with capital investment increasing by nearly 9 per cent to USD 713 billion, alongside an increase in job creation by 1 per cent to 1.89 million. However, the number of FDI projects declined 7 per cent to 11,930.