Skip to main content

India's FDI Confidence ranking drops by 4 points, from 7th to 11th position: AT Kearney

By Rajiv Shah
Top international consultants AT Kearney have noted that, despite Prime Minister Narendra Modi’s Make in India drive, India has dropped from the top 10 positions in foreign direct investment (FDI) confidence index for the first time since 2002. In a just-released report, “Connected Risks: Investing in a Divergent World”, the consultants’ rankings show that India in 2015 ranks No 11th, down from the seventh position in 2014.
All this has happened at a time when “the country's Make in India initiative, launched in September 2014, aims to improve the ease of doing business in India, and remove or relax foreign equity caps in several areas”, the report says. The report also notes this development when the Government of India’s “revised estimates” suggested the country’s gross domestic product (GDP) grew “faster than China’s last year”, and its consumer market remained “significant, sparking broad investor interest.”
The report notes that India’s FDI confidence index ranking was No 2 in 2007, when what then seemed to be an unstable Congress-led coalition at the Centre ruled the country. The ranking remained high over the years when the coalition was in power – No 3 in 2010, No 2 in 2012, No 5 in 2013, and No 7 in 2014, when the UPA government was thrown out of power by a sweeping win by Modi-led BJP.
Despite India “overtaking” China in GDP growth, the report notes that the country remains No 2 of the 25 top FDI Confidence index ranking. It says, “Business executives are carefully watching China for economic growth of around 7 percent, and for signs of a successful transition to a consumption-led economy.”
The report adds, “If those indicators emerge, most executives say their companies would increase investment activity into China. Overall, countries in Asia Pacific have a mixed showing in the Index, with Japan rising to 7th (from 19th last year), and South Korea reentering the Index at 16th after going unranked last year. Australia (10th), India (11th), and Singapore (15th) fall in the rankings but maintain top 20 positions.”
Interestingly, India’s ranking has petered despite the fact that only 12 per cent of business executives – one of the lowest among the top 25 countries – felt negative about India’s FDI confidence level. On the other hand as many as 28 per cent of executives felt positive about India, which was lower than only four other countries – US (46 per cent), Canada (35 per cent), Germany (33 per cent), and China (31 per cent).
The FDI Confidence Index, established by AT Kearney in 1998, claims to examine the “overarching trends in FDI”, ranking the top 25 countries. About its methodology, the report says, it is a “forward-looking analysis of how political, economic, and regulatory changes will likely affect countries' FDI inflows in the coming years”, adding, “Over its 17-year history, there has been a strong correlation between the rankings and global FDI flows.”

Comments

TRENDING

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Kolkata dialogue flags policy and finance deficit in wetland sustainability

By A Representative   Wetlands were the focus of India–Germany climate talks in Kolkata, where experts from government, business, and civil society stressed both their ecological importance and the urgent need for stronger conservation frameworks. 

Beyond Lata: How Asha Bhosle redefined the female voice with her underrated versatility

By Vidya Bhushan Rawat*  The news of iconic Asha Bhosle’s ‘untimely’ demise has shocked music lovers across the country. Asha Tai was 92 years young. Normally, people celebrate a passing at this age, but Asha Bhosle—much like another legend, Dev Anand—never made us feel she was growing old. She was perhaps the most versatile artist in Bombay cinema. Hailing from a family devoted to music, Asha’s journey to success and fame was not easy. Her elder sister, Lata Mangeshkar, had already become the voice of women in cinema, and most contemporaries like Shamshad Begum, Suraiya, and Noor Jehan had slowly faded into oblivion. Frankly, there was no second or third to Lata Mangeshkar; she became the first—and perhaps the only—choice for music directors and all those who mattered in filmmaking. Asha started her musical journey at age 10 with a Marathi film, but her first break in Hindustani cinema came with the film "Chunariya" (1948). Though she was not the first choice of ...

Maoist activity in India: Weakening structures, 'shifts' in leadership, strategy and ideology

By Harsh Thakor*  Recent statements by government representatives have suggested that Maoism in India has been effectively eliminated, citing the weakening of central leadership and intensified security operations. These claims follow sustained counterinsurgency efforts across key regions, including central and eastern India. However, available information from security agencies and independent observers indicates that while the organizational structure of the CPI (Maoist) has been significantly disrupted, elements of the movement remain active. Reports acknowledge the continued presence of cadres in certain forested regions such as Bastar and parts of Dandakaranya, alongside smaller, decentralized units adapting their operational strategies.

'Fraudulent': Ex-civil servants urge President to halt Odisha tribal land dispossession

By A Representative   A collective of 81 retired civil servants from the Constitutional Conduct Group has written to the President of India expressing alarm over what they describe as the wrongful dispossession of tribal lands in Odisha’s Rayagada district. The letter, dated April 19, 2026, highlights violent clashes in Kantamal village where police personnel reportedly injured over 70 tribal residents attempting to protect their community rights. 

Dhandhuka violence: Gujarat minority group seeks judicial action, cites targeted arson

By A Representative   The Minority Coordination Committee (MCC) Gujarat has written to the Director General of Police seeking judicial action in connection with recent violence in Dhandhuka town of Ahmedabad district, alleging targeted attacks on properties belonging to members of the Muslim community following a fatal altercation between two bike riders on April 18.

From Manesar to Noida: Workers take to streets for bread, media looks away

By Sunil Kumar*   Across several states in India, a workers’ movement is gathering momentum. This is not a movement born of luxury or ambition, nor a demand for power-sharing within the state. At its core lies a stark and basic plea: the right to survive with dignity—adequate food, and wages sufficient to afford it.

Midnight weeping: The sociology of tragic vision in Badri Narayan’s poetry

By Ravi Ranjan*  Badri Narayan, a distinguished Hindi poet and social scientist, occupies a unique position in contemporary Indian intellectual life by bridging the worlds of creative literature and critical social inquiry. His poetic journey began significantly with the 1993 collection 'Saca Sune Hue Kaï Dina Hue' (Truth Heard Many Days Ago). As a social historian and cultural anthropologist, Narayan pioneered a methodological shift away from elite archives toward the oral traditions and folk myths of marginalized communities. He eventually legitimized "folk-ethnography" as a rigorous academic discipline during his tenure as Director of the G.B. Pant Social Science Institute.  

Why link women’s reservation to delimitation? The unspoken political calculus

By Vikas Meshram*  April 16, 2026, is likely to be recorded as a special day in the history of Indian democracy. In a three-day special session of Parliament, the central government is set to introduce a comprehensive package of three historic bills: the Constitution (131st Amendment) Bill, 2026; the Delimitation Bill, 2026; and the Union Territories Laws (Amendment) Bill, 2026. The stated purpose of all three is the same: to implement the Nari Shakti Vandan Adhiniyam (106th Constitutional Amendment) passed in 2023. However, the political intent concealed behind these measures — and their impact on the federal balance — is far more profound. It is absolutely essential to understand this.