India received a record FDI inflow of USD 55.5bn in 2015-16 as per numbers released recently by the DIPP. This is a significant 18.4% jump over the previous high of USD 46.9bn seen in 2011-12. India was off to a strong start on the FDI numbers in the first quarter of 2015-16 itself.
Based on this, and other factors such as greater political and policy stability, efforts to reach out to the world and relatively better performance by India compared with emerging economy peers, we at Orbis Economics had correctly forecast that this will be a year when FDI inflows will cross USD 50bn (Orbis Economics Special Report: India's foreign direct investments set to cross USD 50bn in 2015-16; October 3, 2015). Further, based on evolving trends, our forecasts indicated that FDI inflows could also be closer to USD 60bn. While the mark was not quite reached, inflows did reach the halfway mark between the initial and revised forecasts.
This post extracts the detailed reasons from the forecast report that clearly indicated a strong year for FDI inflows. The reasons were as follows:
Read the full report here: http://www.oeresearch.in/economy-research-indias-fdi.html