Financial Times released data on FDI in H1 2015; India emerged most-favoured destination

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Who: Data on FDI in first half of 2015
What: Released by Financial Times, London
When: 29 September 2015

London-based business daily Financial Times (FT) on 29 September 2015 released Foreign Direct Investment (FDI) data for the period January – June (H1) of 2015. As per the data, India in the first half of 2015 surpassed China to emerge as the most-favoured destination for FDI.

India received 31 billion dollar of foreign capital inflows through FDI during January-June 2015 while China with 28 billion dollars is placed at number two position. India and China are followed by the US with 27 billion dollars at third place.

Main Points with respect to India
• FDI inflow into India grew 47% to 24 billion dollar in 2014, a year when many other major FDI destinations posted declined.
• India has more than doubled its mid-year investment levels, attracting 30 billion dollars by the end of June 2015 compared to 12 billion dollars in the first half of 2014.
• Ranking of top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one having attracted roughly 3 billion dollar more than China and 4 billion dollar more than the US.
• In 2014 India ranked fifth in terms of capital investment, after China, the US, the UK and Mexico.

The report was released on the day when Foreign Investment Promotion Board (FIPB) of India cleared 18 proposals worth about 5000 crore rupees. FIPB is the nodal authority that scrutinises overseas investment proposals for India.

Other highlights of the FDI data
• Apart from India, Vietnam as a country that is also on track to continue from a successful FDI showing in 2014 and is holding firm at number seven.
• Indonesia sits at number six is moving up the charts. It recorded an increase of 62 percent in investment to nearly 14 billion dollars in the first half of 2015. Indonesia entered the list of top 10 FDI destinations in 2014 and was ranked at 10th position.
• Brazil is plummeting down the FDI charts and, if current trends hold, will fall out of the top 10 list by the end of 2015 after holding on at number nine 2014. In line with a drastic tailing off of economic growth, FDI into Brazil has been in decline since a peak year of 2011.

Top 10 destinations – H1 2015

Country Capex (billion dollars)
India 31
China 28
US 27
UK 16
Mexico 14
Indonesia 14
Vietnam 8
Spain 7
Malaysia 7
Australia 7

The report was published at a time when the FDI into emerging markets as a group is falling off a cliff. Research from fDi Markets found 97 of 154 countries typically classed as emerging markets experiencing declines in capital expenditure on greenfield investment projects in the first six months of 2015 compared with the same time period 2014.