India makes a splash as FDI inflow picks up

FDI inflows in India rose 22 per cent to USD 34 billion in 2014, and the upward trend is likely to continue against the backdrop of a push to manufacturing as part of the 'Make In India' initiative, a UN report said today.
Foreign direct investment (FDI) inflows to South Asia rose to USD 41 billion in 2014, primarily owing to good performance by India, said the UNCTAD's World Investment Report 2015.
"FDI inflows to India are likely to maintain an upward trend in 2015 as economic recovery gains ground... In terms of the sectoral composition of FDI inflows, manufacturing is likely to gain strength, as policy efforts to revitalise the industrial sector are sustained, including, for example, the 'Make in India' initiative launched in mid-2014," it said.

The increase in the fund flows to India comes at a time when the global FDI fell 16 per cent to USD 1.23 trillion in 2014.
Releasing the report here, Policy Analyst and UNCTAD Consultant Premila Nazareth Satyanand said, "Once again, we (India) are in top 10 countries. In 2008, we went out of top 10... We are doing better than others. India is in higher bracket this year."
Satyanand added: "India ranked 6th among the most promising investor economies. It ranked 3rd among top 10 prospective home economies. We are very much in people's mind."
However, she said, "when we look at FDI outflow, India is not among the top 10 countries".

Satyanand noted that detailing of FDI statistics is very rudimentary in India and called for its state-wise reporting.