India lags far behind China in FDI inflows

For all the comparisons between India and China that do the rounds, this one goes hands down to China without as much as a fight. Today's chart of the day shows just how far India is when it comes to attracting foreign long-term capital investments from the rest of the world when compared to its aggressive neighbour. Foreign direct investments (FDI) are those investments that foreigners make in a country to build a business in that country. In entails investments in physical assets such a plant, machinery and buildings for that purpose.

What's most striking about this comparison is that the quantum of FDI flowing into India in the year 2008 (US$ 35 bn) was breached by China way back in 1995! While the Indian government has in the last few years been taking steps to attract foreign long term capital, it has clearly not been enough when seen from this perspective.