India’s ranks first in FDI Destination which replaces China in 2015

In 2015, India gained the first rank in the World for Foreign Direct Investment overtaking the US and China

Foreign Direct Investment:

Investment made by a company or entity based in one country, into a comapany or entity based in another country.

• India attracts $63 billion value FDI projects from other countries in 2015

Companies Agreed to invest in projects

• Foxconn – Multinational electronics contract manufacturing company headquartered in New Taipei, Taiwan worth $5 billion
• SunEdison – Global renewable energy company headquartered in the U.S worth $4billion
• Capital Investment followed by year of high Value Project majorly in Coal, Oil and Natural Gas and renewable energy sectors.
• In Twitter, Minister of State for Finance Jayant Sinha expressed his happiness and stated that India emerges on top rank in bringing FDI

India Claims five places

• No 1. Gujarat attracted $12.4 billion
• No. 2 Maharashtra brought $8.3 billion

Reasons for investing more in India and China

• Companies identify domestic market growth and potential
• Proximity to markets

FDI Report

• To attract high volumes, locations need to generate conditions for progress in economic growth and development
• Make in India Campaign resulted in major increase in job creation from 1.16 lakh new jobs in 2013 to 2.25 lakh in 2015
• 98% FDI into India comes through automatic route which are not under the control of FIPB
• India is a emerging destination for renewable energy due to wider government policies, infrastructure and programmes designed to attract investment.

India ranks no.1 with USD 11.8 billion

Renewable Energy’s plan to invest USD 3 billion to design, install and manage more than 3 GW of solar power

• China declined a 23% in Capital investment and 16 % drop in FDI projects
• FDI inflow in India and China was followed by Indonesia, Mexico and Brazil