India slipped to 14th spot in the list of countries that attracted the highest foreign direct investment last year, with inflows declining by about $10 billion to $25 billion, says a UN report.

India is ranked way below neighbouring China, which saw FDI inflows to the tune of $106 billion in 2010.

The ‘World Investment Report 2011’ released by UNCTAD here today said that India attracted FDI worth $25 billion last year, much lower than $36 billion seen in 2009.

The country’s ranking has also dropped to 14th place from 8th position in 2009. The list of nations that saw the maximum FDI last year is topped by the United States ($228 billion).

Releasing the report, independent economic researcher Premila Nazareth Satyanand said that last year’s FDI trend is a little bit worrying and added that the country needs to have a good investment climate.

According to UNCTAD, foreign direct investment inflows worldwide climbed 5 per cent to about $1.24 trillion last year compared to 2009.

“FDI to South Asia declined to $32 billion, reflecting a 31 per cent slide in inflows to India and a 14 per cent drop in flows to Pakistan. By contrast, inflows to Bangladesh, a rising low-cost production location, increased by nearly 30 per cent to $913 million,” the report said.

In 2010, FDI inflows to South, East and South-East Asia rose 24 per cent to $300 billion.

Going by official data, India saw FDI inflows of $19.42 billion in 2010-11. At present, foreign direct investment flows into the country are sluggish, especially due to uncertain global economic conditions.

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