India has lost three places in global investment destinations according to the AT Kearney Foreign Direct Investment Confidence Index.

Share Market Live

NSE

India ranks 11th in this year’s Index, holding its position as the second-highest ranking emerging market.

Investors based in the Americas and in the industry sector rank India the highest in terms of their intention to invest there, a result of the Modi government's “Make in India” initiative, the report said.

Inward FDI flows already increased to an estimated $45 billion in 2017, and India remains among the top investment destinations due to its sheer market size and rapid economic growth.

Japan, the United States, the United Kingdom, and Singapore consistently ranking as the top investors in the country.

The country’s service sector is a target of particular interest for investors, with the government’s economic survey 2017–18 noting that inward FDI to the service sector will grow by 15 percent from 2017 to 2018.

The International Monetary Fund projects a growth of 7.4% for the Indian economy in 2018, the highest of any major economy.

“We are in a very exciting space of growth, opportunity and transformation. For long India has been a very exciting destination for investors," said Vikas Kaushal, managing director and country head at A.T. Kearney India.

He added that the current political stability and positive reforms environment in the country will only boost its attractiveness as an investment destination.

Globally,79% of investors plan to increase their foreign direct investment in the next three years, according to the 2018 Foreign Direct Investment (FDI) Confidence Index from A.T. Kearney.

This is a four percentage point increase on last year’s results, highlighting the continued bullishness of investors amidst geopolitical turmoil and economic expansion.

Investors also signal greater confidence in the global economy, with 66% more optimistic about the global economic outlook than they were last year.

A.T. Kearney is a global management consulting firm.

First Published:May 2, 2018 6:30 PM IST