uploads///Indias GDP Versus FDI

Why Chinese Investors Are Looking to India

Sarah Sands - Author

Nov. 29 2017, Updated 7:35 a.m. ET

China’s investment in India

In June 2017, China’s FDI (foreign direct investment) in India had soared to $1.7 billion, according to Indian government figures. However, Chinese investment (MCHI) in Indian companies could be five times more than this official figure.

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World FDI

In 2016, India ranked 12 based on the FDI net inflows in the world, according to the World Bank’s statistics report. Between 2013 and 2016, the FDI in India (INDA) rose continuously. Moreover, during this period, the Indian economy grew over 6%.

Indian economy in 2017

In the first two quarters of 2017, India’s growth rate was over 5%. Based on the World Bank statistics report, the Indian economy could grow by 7.2% in 2017. In fact, in 2017, China’s (FXI) (ASHR) economy could rise by 6.5%. Moreover, India ranked 100 compared to the previous rank of 130, in the World Bank’s “Ease of Doing Business” list. This data was released on October 31, 2017. So, the robust economic growth and reforms in business regulations could increase FDI investment in India further.

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