For the second year in a row, India topped cross-border capital (greenfield) investments in 2016 with $62.3 billion of FDI projects, according to fDi Intelligence, an FT data division. While this was up 2% from 2015, China pipped the US to second spot, with FDI capital investment of $59 billion in 2016. On a year-on-year basis, the US saw a 23% decline in such investments in 2016 to $48 billion, as some investors took a wait-and-see approach in the run-up to the presidential elections.While overall cross-border greenfield investments grew just 6% in 2016, Asia Pacific retained the leading destination status for such FDI soaking up 45%.
According to the data put out by department of industrial policy and promotion, FDI flows into India — including re-invested earnings — stood at $60 billion (provisional) in 2016-17, up 8% over the previous year. The growth in FDI flows was 23% in 2015-16 and 25% in 2014-15. However, if conventional definition of FDI is followed (which means reinvested earnings and “other capital” are excluded and only equity capital component is counted), FDI flows into India in 2016-17 were $43.48 billion, up 9% over the previous year.