The Hindu Business Line : India tops US for 2nd spot in FDI destination rankings

INDIA replaces the US as the second most attractive FDI location, up from last year's third place ranking, according to the latest Foreign Direct Investment Confidence Index, an annual survey of executives from the world's largest companies conducted by AT Kearney. China continued on top of the index for the third year running.

According to AT Kearney, it is for the first time in the history of the index, which began tracking the FDI intentions of global executives in 1998, emerging market countries have been ranked first and second as the most attractive FDI locations.

Roughly 45 per cent of global investors more upbeat on China and India compared to last year — nearly twice the number recorded for the next three most positively viewed markets, Brazil, Poland, and Russia. Investor enthusiasm for China and India is at an all-time high, an AT Kearney release said.

The bullishness among corporate leaders about India has been attributed to several factors, including FDI inflows to India surpassing the $5-billion mark in 2004, the Government reforming the FIPB and setting up the Investment Commission and FDI caps in telecom, aviation, banking, media sectors being raised.

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