Indian economy enjoyed a year-on-year increase of 35 per cent in foreign direct investment (FDI) in during the first half of current year, the United Nations Conference on Trade and Development (UNCTAD) said in its latest report.

According to the UNCTAD report, released on Thursday, India received FDI worth $13.6 billion during the January-June period of 2013, as against $10.1 billion in the corresponding period of the previous year.

Merger & acquisitions (M&A) accounted for the bulk of FDI inflows into India during the period under review. FDI through M&A registered an impressive growth of 65.7 per cent to $1.8 billion in the first six months of this year, as against $1.1 billion in the same period of last year.

The report also said that FDI inflows into India also significantly pushed the total figures for the South Asian Association for Regional Cooperation (SAARC) region.

It said, "An increase in flows to the SAARC is accounted for mainly by the rise in flows to India."

Among Brazil, Russia, India, China and South Africa (BRICS), India stood at fourth position, above South Africa, in terms of foreign direct investment inflows in the period under review.

In developed countries, FDI flows slipped in the concerned six-month period. As per UNCTAD's estimates, FDI flows into developed economies will remain close to the 2012 level, despite improvements in these economies' macroeconomic conditions.