India along with Indonesia, Malaysia, Thailand, the Philippines and Vietnam is more attractive to FDIs as compared to other emerging markets. A report by Japan’s financial services major, Nomura, dubbed India and these ASEAN countries as Asia’s tiger cubs.
It said FDI inflows to these nations will increase from around 100 billion US Dollars per year now to around 240 billion dollars by 2025.
The report said, sources of FDI to these countries are also witnessing a significant shift with more inflows expected from countries as China and Japan.
The report also said, rising labour costs in China and an ageing population in Northeast Asia have dis-incentivised FDI and they are in search of new destinations and India and the ASEAN-5 are well placed to emerge as that destination.