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, 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.
The index also indicates that investors continue to look at Asia-Pacific as a key driver of growth. Five countries from the region feature in the top 10 rankings this year, highlighting the confidence global business leaders have in the region. The other four countries are: China (ranked 3rd), Japan (retains its 6th place), Australia (down to 9th place) and Singapore (ranked 10th for the second year running).The US topped the FDI Confidence Index, holding its first-place position for the fifth year in a row. Germany jumped two spots to second with China moving down one position to third. The UK and Canada made up the rest of the top 5.
1) The FDI Confidence Index is an indicator created by A.T. Kearney, a global management consulting firm operating in 40 countries across the world. The index ranks countries on a scale from 0 to 3 based on their attractiveness for foreign direct investments.
2) A score of 3 represents the highest level of confidence. The index is constructed using data from a survey capturing the opinions of senior executives and regional and business leaders from 27 countries with high FDI outword flows.