India has replaced China as top destination for foreign direct investment by attracting $63 billion worth FDI projects in 2015, says a report.
“India was the highest ranked country by capital investment in 2015, with $63 billion-worth of FDI projects announced,” according to fDi Intelligence, a division of The Financial Times. Also there was an 8 percent 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, it said.
India replaced China as the top destination for FDI by capital investment following a year of high-value project announcements specifically across the coal, oil and natural gas and renewable energy sectors.fDi Intelligence Report
It said the biggest change in greenfield FDI in 2015 was the near tripling of greenfield FDI into India, with an estimated $63 billion. A green field investment is a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Of the top 10 destination states for FDI in 2015, India claims five places with the top spot going to Gujarat which attracted $12.4 billion. Maharashtra attracted $8.3 billion in 2015.
The rapid growth of greenfield FDI in India shows that while economic development organisations try to attract FDI for the contribution greenfield FDI can make to employment and GDP, FDI is strongly attracted to high-growth economies. Success breeds success and to attract high volumes of FDI, locations need to create the conditions for strong economic growth and development to take place.fDi Intelligence Report
It 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.
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