India continues to be a favourite FDI destination though tax-related concerns remain a deterrent for some foreign investors. <br/><br/>An UNCTAD report said, foreign direct investment (FDI) inflows to developing Asia shrank by 15 per cent to 443 billion US dollars in 2016, the first decline since 2012. This affected three sub-regions, with only South Asia spared.'<br/><br/>However, UNCTAD's World Investment Report 2017 said an improved economic outlook in major economies, such as ASEAN, China and India, is likely to boost investors' confidence, propping up the region's FDI prospects for 2017.''<br/><br/>In South Asia, FDI inflows increased by 6 per cent to 54 billion US Dollars. Flows to India were stagnant at 44 billion US Dollars.