India remains a preferred destination for foreign direct investment (FDI) as domestic consumption remains strong, according to RBI Annual Report.
With manufacturing sector gathering momentum, helped by both services and agriculture sectors, consumption demand remains robust in the country making it an attractive investment destination, it said. India received USD 37.3 billion capital inflow in 2017-18 as compared to USD 36.3 billion in the previous fiscal. During the 2015-16, the country received USD 36.06 billion. Manufacturing activity is gathering momentum on the back of new business, both domestic and export orders, rising capacity utilisation and drawdown of inventories, said the RBI report. In the services sector, the impulses of growth are broadening and expansion in employment conditions is generating anticipations of improvement in demand conditions.