India remains a major foreign direct investment (FDI) destination in the South Asia. In the year 2011, the country attracted $32 billion of FDI into the country, according to the latest report release of UN Conference on Trade and Development (UNCTAD) World Investment Report 2012.
At the global level, India is the third most preferred destination after China and the United States. India accounted for more than four fifths of the region’s FDI in the South Asian region.
The FDI outflow from India rose by 12 percent to $15 billion. “India remained the largest investor in least developed countries (LDCs) from developing and transition economies, followed by China and South Africa,” the report noted. In Africa, Zimbabwe attracted the largest greenfield investment from India.
The report talks about uncertainties gripping the South Asian region while talking about political issues of India. “South Asian countries face different challenges in building a conducive business environment…These challenges include, for instance, stabilisation in Afghanistan, security concerns in the Islamic Republic of Iran and Pakistan, and macroeconomic as well as political issues in India,” the report pointed out.
The report also noted the recent developments such as the improving relationship between India and Pakistan has highlighted new opportunities for both the countries.
The World Investment Report has been published annually since 1991.