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
- 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