India may this year surpass China in attracting foreign direct investment, in terms of percentage of its GDP, as the gap in inflows between the two has been narrowing on the back of ongoing reforms in the country. According to the Japanese financial services firm Nomura, the trend of rising inflows to India and moderating inflows to China began in 2013 and FDI inflows to India can surpass those into China this year.Nomura's research report said, FDI inflows to India rose from 1.7 per cent of GDP in 2014 to 2.1 per cent in 2015, narrowing the gap with China, which had 2.3 per cent of GDP in 2015. These trends of rising inflows to India and moderating inflows to China are likely driven by a mix of pull and push factors, such as divergent growth outlooks, ongoing FDI liberalisation or economic reforms in India and rising labour costs in China, Nomura said.Meanwhile, Moody's Investors Service says, in India, corporate debt stands at about 50 per cent of GDP and has been broadly stable for the past five years. However, poor profitability and concentration of leverage suggest some risks, it says. Retail deposits are the primary source of funding for Indian banks and comfortable compliance with liquidity requirements is an important factor in mitigating risks. It also points to the marked increase in non-performing loans of PSU banks – which hold more than 70 per cent of total banking system assets – in late 2015.