India slips to 7th slot on Foreign Direct Investment confidence index
Washington: India has slipped to its lowest position in over a decade in the foreign direct investment confidence index, which has been topped by the United States for the second year in a row, a study has showed. The survey of 300 global executives by global consulting firm A T Kearney found that the US was ranked top destination in the world for foreign direct investment. India was ranked second for three years in 2005, 2007 and 2012 and was placed on the third spot in 2010.
India attracted $25.5 billion in FDI inflows in 2012, down from $31.6 billion in 2011, according to 2014 A T Kearney Foreign Direct Investment Confidence Index released on Tuesday. This is the lowest ranking for India since 2001. The US moved to the top position last year displacing China as Washington made progress towards sustainable and steady economic growth.
“The cooling-off in investor sentiment we foresaw last year appears to have taken shape, with a two-place drop from 5th to 7th — its lowest rank since 2001,” the report said. In 2013, the then ruling UPA government raised limits on FDI in telecommunications, asset reconstruction, credit information, aviation, and def-ence production, the report said adding that foreign investment in oil refining and single-brand retail, currently capped at 49 per cent, will now be granted automatic appr-oval. AirAsia India, a joint venture between AirAsia and Tata Sons has been given the nod by FIPB.
