India has emerged as the top destination for foreign direct investment (FDI) in the first half of the year, surpassing China and the US.
The country saw capital inflows to the tune of $31 billion during January-June period, while China and the US attracted an investment of $28 billion and $27 billion, according to a report by The Financial Times.
Last year, India stood at the fifth position in the list of top FDI destinations.
"A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US," NDTV Profit quoted, the FT report, as saying.
Finance Minister Arun Jaitley was "quick" to relate the increase in foreign capital inflows to measures taken by the Modi government.
"Satisfying, our efforts are paying off. India becomes the Highest FDI destination for Greenfield projects," he said on twitter.
After coming into power in May last year, the National Democratic Alliance (NDA) government has taken various measures to bring in more foreign investment and boost its manufacturing activity through its 'Make in India' initiative.
Some of the steps taken by the government include doing away with minimum paid-up capital for companies, facilitating the incorporation of companies with one form, and cutting down the documentation work for exports and imports.
From 1 May, the Ministry Of Corporate Affairs started providing one integrated company incorporation form in place of eight forms required earlier, making compliance and reporting procedures easier for businesses.
"In a year when many major FDI destinations posted declines, India experienced one of 2014's best FDI growth rates, increasing its number of projects by 47 per cent," the newspaper report said.
Prime Minister Narendra Modi has set a target to push the country to the top 50 list in World Bank's "Ease of Doing Business" index in three years. In its last report, the World Bank had ranked India at the 142nd position.
