India has emerged among the preferred destinations for the overseas investors and is set to attract foreign direct investment of $40 billion in the year 2008-09. At present, India is the world’s second fastest growing economy.
The country received $20 billion foreign direct investment (FDI) between January and June in the calendar 2008 and $10 billion in the first quarter of the current fiscal. The inflows in 2007-08 were $25 billion.
Automobiles and construction equipment segments are attracting increased interest among the various investors, though the index for Industrial Production (IIP) growth had dropped to 5.4% in June this fiscal from 8.9% year ago.