NEW DELHI: India has emerged as the second most attractive location after China, but ahead of the US and Russia, for global foreign direct investment in 2007, the World Investment Report of the UNCTAD has said."

China is the most preferred investment location, followed by India, the US and then the Russian Federation and Brazil," the report released worldwide said.India's ranking in inward FDI performance index has also improved to 113 in 2006 from 121 in 2005. Significantly, India and China are emerging as major players in terms of FDI outflows as well. They are "beginning to challenge the dominance of the Asian newly industrializing economies (NIEs) -- Hong Kong (China), the Republic of Korea, Singapore and Taiwan ...

As the main sources of FDI in developing Asia," it said.In terms of locational choice for foreign investors, China polled 52 per cent of the respondents in the UNCTAD survey followed by India with 41 per cent. The US received support of 36 per cent and Russia 22 per cent, followed by Brazil with 12 per cent.Rapid economic growth in South, East and South-East Asia is likely to continue, underpinned by the strong performance of China and India.

In addition, the region may become more attractive to "efficiency-seeking" FDI, owing to the plans of several countries such as India and China, Indonesia and Vietnam to develop their infrastructure.India was the fourth largest recipient of FDI during 2005-06 with China and Hong Kong (China) remaining on top. Singapore was ahead of India at the third position. "..India registered a substantial increase in FDI amounting to 17 billion dollars," the report said.