Since the economic reforms process began in India from 1991, Foreign Direct Investment (FDI) equity inflows has totalled $132.4 bn to the fiscal year March 2010. However, 87% or $116 bn of this has come only in the last 10 years. Within this decade to March 2010, 81% of the $116 bn has occurred in the last four years. Thus, from a very slow start in the 1990s when FDI was stuck at a low figure (especially compared to China) it has accelerated in the last few years as more sectors have been opened to foreign investment and the allure of the India growth story has increasingly influenced foreign investors. Despite perceptions by foreign investors of hurdles like painful bureaucracy, corruption and inconsistent policies the huge domestic market in India is hard to ignore; especially since developed economies are stagnating or show anaemic growth.

David Fuller's view This report is more relevant than ever for investors interested in one of the world's most promising economies and stock markets. Don't miss the two tables on countries leading the FDI and also the top sectors involved.