India retained its numero uno position being the world’s top most Greenfield FDI investment destination for the second consecutive year, attracting USD 62.3 billion in 2016, says a report. India has remained ahead of China and the US as far as FDI inflows were concerned in the last year, said the FDI Report 2017 compiled by FDI Intelligence. FDI by capital investment saw an increase of two per cent to USD 62.3 billion in 809 projects during 2016 in India.
‘India managed to keep the crown as the world’s number one location for greenfield capital investment for the second year running ahead of China and the US,’ the report said. The global investment landscape, the report said, has changed considerably in 2016 as FDI gravitated to locations experiencing the strongest economic growth, while locations in recession or facing high levels of uncertainty saw major declines. In 2016, Greenfield FDI continued to rise worldwide, with capital investment increasing by more than 6 percent to USD 776.2 billion, its highest since 2011, alongside an increase in job creation by five percent to 2.02 million.
However, the number of FDI projects declined three per cent to 12,644. China has overtaken the US to become the second biggest country for FDI by capital investment, recording USD 59 billion of announced FDI, compared with USD 48 billion-worth in the US. Globally, the real estate sector has claimed the top spot for capital investment, with USD 157.5 billion of announced FDI recorded in 2016, following an increase of 58 percent. In value terms, coal and natural gas witnessed an inflow of USD 121 billion, followed by alternate and renewable energy at USD 77 billion.
A high-level internal assessment report of the government on the drive has found that the demonetization move has given the economy a Rs five lakh crore advantage, a report said. The junked 500 and 1,000 rupee notes, had made up 86.4 percent of the country’s circulating currency. The report pointed out that currency worth Rs 17.77 lakh crore was in circulation in the economy at the time of crackdown on old currency notes.
Now speculating, had the demonetization drive not taken place the banknotes in circulation would have reached Rs 19.25 lakh crore by May 2017.
‘However, according to RBI figures, at the end of April this year, the total amount of currency in circulation was Rs 14.2 lakh crore,’ the report quoted. ‘This means that the economy now has roughly Rs five lakh crore cash less than the amount it would have had if note ban had not happened,’ it further added.