Why India is an FDI magnet

The country satisfies several preconditions to attract FDI

Foreign direct investment (FDI) is looking for a new destination. Rising labour costs in China and an ageing population in North-East Asia mean the major countries involved in global supply chains have become expensive in terms of manufacturing. Moreover, growth opportunities globally are sparse, and all the while multinational corporations (MNC) are on the lookout for high-growth markets.

India satisfies many precondi-tions required to attract FDI. First, it offers a large market. Favourable demographics, rising per capita income and low penetration of consumer goods and services suggest immense potential. Income growth is likely to be the fastest in the top income