According to the UNCTAD's World Investment Report 2014, India has slipped by one place to the fourth position in latest raking of most favored destinations for investment by global corporations. FDI is considered crucial for India, which requires around $1 trillion in the 12th five-year plan (2012-2017) to overhaul its infrastructure sector such as ports, airports and highways to boost growth. India was world's third most attractive destination for investment in 2013 and remained second most favored investment destination during 2005, 2006, 2007, 2008 and 2010.
On the global front, the report highlighted that China has retained its top position as the world's most attractive investment destination followed by the US and Indonesia at second and third place. Global FDI inflow's rose by 9 percent to $1.45 trillion in 2013 while FDI inflows into India grew by 17 percent to $28 billion in 2013. The report expects that the global FDI flows will rise to $1.6 trillion in 2014 and $1.75 trillion in 2015.
Meanwhile, in order to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors, which include telecom, tea, pension and petroleum and natural gas among others. Now the government plans to relax the FDI policy in sectors such as defence, railways and construction activities.