India Pips China, US to Emerge as Favourite Foreign Investment Destination: Report

India has pulled ahead of China and US to emerge as the world's number one destination for foreign direct investment (FDI) in 2015, according The Financial Times newspaper.

India received $31 billion in foreign capital inflows in the first half of 2015; China was second with $28 billion and US third with $27 billion, the report said.

"A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US," the FT report said.

India made significant gains in ranking, jumping to the pole position from fifth last year. Finance Minister Arun Jaitley was quick to link rising capital flows to the policies of the Modi government.