New Delhi: India slipped to 14th spot in the list of countries that attracted the highest foreign direct investment last year, with inflows declining by about USD 10 billion to USD 25 billion, says a UN report.
India is ranked way below neighbouring China, which saw FDI inflows to the tune of USD 106 billion in 2010.
The 'World Investment Report 2011' released by UNCTAD here Tuesday said that India attracted FDI worth USD 25 billion last year, much lower than the inflows of USD 36 billion seen in 2009.
India's ranking has also dropped to 14th place from 8th position in 2009.
The list of nations that saw the maximum FDI last year is topped by the United States (USD 228 billion).
Releasing the report, independent economic researcher Premila Nazareth Satyanand said that last year's FDI trend is a little bit worrying and added that the country needs to have a good investment climate.
According to UNCTAD, foreign direct investment inflows worldwide climbed 5 percent to about USD 1.24 trillion last year, compared to 2009.
"FDI to South Asia declined to USD 32 billion, reflecting a 31 percent slide in inflows to India and a 14 percent drop in flows to Pakistan. By contrast, inflows to Bangladesh, a rising low-cost production location, increased by nearly 30 percent to USD 913 million," the report said.
In 2010, FDI inflows to South, East and South-East Asia rose by 24 percent to USD 300 billion.
Going by official data, India saw FDI inflows of USD 19.42 billion in 2010-11. Presently, foreign direct investment flows into the country are sluggish, especially due to uncertain global economic conditions.
PTI
