According to the World Investment Report 2013 released by UNCTAD placed India has retained its position as the world's third most attractive destination for investment by transnational corporations (TNCs) during 2013-15. In the survey based on responses of 159 companies, India was ranked after China and United States.
Indonesia and Brazil are also among the top five investment destinations. As per the survey, developing countries make up four of the top five host economies. Six of the top 10 prospective host countries also come from the developing world, with Mexico and Thailand appearing for the first time.
However among developed economies, Japan jumped three positions largely because of reconstruction efforts after the 2011 Tsunami and recent expansionary monetary policies have together increased the country's attractiveness for foreign investment in the medium term.
At the same time, Australia, Russia and United Kingdom slipped down the rankings from last year's survey, while Germany gained two positions.
However the report stated that Global foreign direct investment (FDI) in 2013 is likely to remain close to the level of 2012 at about USD 1.45 trillion.
According to the report macroeconomic conditions will improve and investors will be able regain confidence in the medium term hence transnational corporations (TNCs) may convert their record levels of cash holdings into new investments.
Further, the report warned that factors such as structural weaknesses in the global financial system, the possible deterioration of the macroeconomic environment, and significant policy uncertainty in areas crucial for investor confidence might lead to a further decline in FDI inflows.
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