Thursday, September 29 2005 14:40 Hrs (IST) - World Time -

New Delhi: India, which attracted $5.3 billion of foreign direct investment in 2004, has emerged as one of the three most attractive destinations for FDI inflow, according to the UNCTAD's World Investment Report, 2005.

The report said two surveys carrying responses of experts and transnational corporations (TNCs) conducted by the United Nations Conference on Trade and Development (UNCTAD) put China, India and the United States as the most favoured FDI nations.

While experts put India behind China and US, TNCs gave India the second rating behind China and ahead of the United States.

China is considered the most attractive location by 87 per cent of TNCs and 85 per cent of experts, the report said.

As many as 42 per cent of experts and 51 per cent of TNCs called India as the most favoured destination.

"India's high ranking, albeit with 30 per cent few responses than China's is even more remarkable, given that FDI flows to the country have been modest until recently," the report said.

Releasing the report, Research and Information System for Developing Countries (RIS) Director General Nagesh Kumar said the findings of the surveys suggest that MNCs are taking India much more seriously and are keen in participating in the country's success story.

Pointing out that $5.3 billion of FDI attracted by India last calendar year is much below the potential, Kumar said the inflow should increase in 2006.