Despite the global financial crisis and domestic problems, India has been named as the third most favored destination for investment. According to world investment report 2012, the foreign direct investment inflows to India could increase by more than 20% this year and the next year as major global companies consider India as their favored nation after china and the US.
The survey was based on 179 global firms around the world and conducted between Feb and may on their favored investment destinations for 2012 to 2014. According to this report, FDI in year 2011 was 31.55 billion USD against 24.15 billion USD in 2010. The country received highest FDI in 2008 when inflows reached 43.40 billion USD which shows the potential of the country.
The report said that India is doing better in terms of growth compared to many other places and is attracting global investors for long-term prospects and wide market in Asia’s third largest economy. Earlier this year India allowed full foreign ownership of single brand retailers which many economists see a positive step for achieving economic growth.
Indian economic growth which grew at its slowest pace in almost a decade has been badly hit by political roadblocks to economic policymaking but according to this report the slow growth rate failed to cast a shadow on foreign investment attraction.