India has climbed one spot to the eighth rank in the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index as investors turned bullish on the Asia-Pacific.
The index, released on Tuesday, shows that investor confidence in India has been growing steadily over the last two years, making it one of the top two emerging market performers on the FDI Index, along with China.
In this year’s survey, 31% of the respondents said they were more optimistic about India’s economic outlook over the next three years compared to a year ago.
This year’s Index highlighted another key trend. Governance and regulatory issues made up seven of the top 10 factors that investors consider when deciding on an investment destination. In fact, the top three issues pertained to these aspects. This is in contrast to last year when factors like domestic market size and cost of labor were the top issues for investors.
Performance of India:
India is ranked 11th. India was down three notches in the overall ranking from last year.
India remains the second highest ranked emerging market on the Index. A variety of recent reforms have made its regulatory environment more business-friendly, and economic growth is forecast to rebound this year.
Overall, India remains among the top investment destinations due to its market size and rapid economic growth.
Performance of other countries:
The US topped the list, followed by Canada, while Germany dropped to the third place.
The United States tops the Foreign Direct Investment (FDI) Confidence Index for the sixth year in a row.
The top five countries on the Index have not changed in the past three years, but their relative positions have shifted.
While the top 10 likely destinations for FDI were the same in 2016 and 2017, there is a change in the composition of the list this year: Switzerland and Italy enter the top 10 for the first time in more than a decade, edging out India and Singapore.
European markets account for more than half of the total positions on this year’s Index as well as half of the top 10.