India has secured ninth position in the 2016 Foreign Direct Investment Confidence Index

Vikas Kaushal Speech:

He said that being grown belief among global business leaders that India is finally embarking on a growth path that will see it unlock its full potential.

• He also noted the government has kick started reforms and has undertaken various measures to boost domestic demand, employment and macroeconomic stability in the country.
• He clarified that the global economic environment continued uncertainity in India and it is likely to fastens the growth rate.
• He denoted that India has emerged as the fastest growing economy in the world, surpassing China as well as Brazil, Russia and South Africa.

The Index of a London:

• The Index of a London-based consulting firm progresses political, economic, and regulatory changes which likely affect FDI.
• The Index is constructed using primary data from a proprietary survey administered to senior executives of the world’s leading corporations.

Economic Survey:

In this year’s survey, 32 per cent of the respondents suggested that more optimistic about India’s economic overview over the next three years.

The results of the Index:

• Show that domestic market size
• Cost of labour
• Regulatory transparency
• Lack of corruption

Rank Postions of Various Countries:

• The US and China hold top two positions in FDI Confidence Index
• Canada ranked at third position.
• Germany secured fourth position.
• The UK, Japan, Australia and France secured the fifth, sixth, seventh and eighth position
• Singapore secured the tenth position.

FDI Definition:

A foreign direct investment is a controlling ownership in a business enterprise in one country by an entity based in another country.

About Foreign Direct Investment in India:

• Foreign Direct Investment (FDI) in India is the major monetary source for economic development in India.
• Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India.
• Economic liberalisation started in India in wake of the 1991 economic crisis and since then FDI has steadily increased in India.