India 3rd most-favoured FDI destination: UN report

Discussion in 'World Affairs' started by IndoCarib, Jul 5, 2012.

  1. IndoCarib

    IndoCarib SENIOR MEMBER

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    Major global companies consider India their third most favoured destination after China and the United States, a UN report said on Thursday, and investment inflows could increase by more than 20% both this year and next.

    Foreign direct investment (FDI) flows into India leapt 30% to nearly USD 32 billion in 2011, though held back by slow pace of reforms, it still remains a long way down the league table of FDI recipients.

    China drew USD 124 billion last year, while Brazil attracted nearly USD 67 billion and Russia USD 53 billion..


    Some 179 global companies - from the manufacturing, services and primary sectors - were surveyed between February and May, on their favoured investment destinations for 2012 to 2014.

    Kumar said FDI growth seems to be keeping its momentum in 2012, referring to furniture maker IKEA and Coca Cola's recent announcements to pump nearly USD 5 billion combined into India over the long term.

    Though India's economic growth slowed to 5.3% in the March quarter, its slowest in nine years, its trends still compared favorably, Kumar said.

    "Compared to many other places, India is doing better in terms of growth," he said, adding global investors were looking at the long term prospects and wide market in Asia's third largest economy.

    The report said worldwide FDI flows exceeded the pre-financial crisis average in 2011, reaching around USD 1.5 trillion, despite turmoil in the global economy, and is projected around USD 1.6 trillion this year.

    Global companies are sitting on hefty cash reserves and waiting for the euro zone situation to stabilise before investing, he said.

    Earlier this year India allowed full foreign ownership of single brand retailers, although late last year it backtracked on a plan to allow in foreign supermarkets.

    Many investors are hoping it revives that plan soon, after Prime Minister Manmohan Singh recently took over the finance portfolio and talked about the need to address problems in the insurance and mutual fund industries, as well as taxation.

    Kumar said corporate investors look at long term prospects and recent controversies over retroactive tax proposals broadly aimed at taxing companies like Vodafone , or proposed general anti-tax avoidance rules (GAAR) would not hurt India's prospects as an investment destination.


    Firms see India 3rd most-favoured destination: UN report - Reuters -
     
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  2. Cherokee

    Cherokee SENIOR MEMBER

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    If we get Right kind of leadership we will be on top of this chart
     
  3. Impasse

    Impasse FULL MEMBER

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    One thing is clear, the govt. is screwing our nation and hampering the growth.
     
  4. IndoCarib

    IndoCarib SENIOR MEMBER

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    How FDI influx is hampering growth ? :what:
     
  5. Hello_10

    Hello_10 BANNED

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    do we have table of that report, listing different rank of countries?
     
  6. Zeeshan360

    Zeeshan360 FULL MEMBER

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    I hope we pass multi retail FDI law ..
    China being a communist country has more open economy than us
     
  7. ephone

    ephone SENIOR MEMBER

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    So many "if"s.

    Just like if you get rid of caste system. :)

    China: 124b
    Brazil: 67b
    Russia: 53b
    India: 32b

    How could India be the 3rd favorite???

     
  8. IndoCarib

    IndoCarib SENIOR MEMBER

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    here,

    [​IMG]

    We will abolish caste system when chinese citizens become free in their own country ! :P
     
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  9. Fanling Monk

    Fanling Monk FULL MEMBER

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    Major global companies consider India their third most favoured destination after China and the United States

    China drew USD 124 billion last year, while Brazil attracted nearly USD 67 billion and Russia USD 53 billion..



    The second statement is a little confusing. The US FDI has no figure and if I assume is higher than India, that makes India the fifth most favorite place to invest after China, the US, Brazil and Russia. Care to explain, Anyone?
     
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  10. Freddie

    Freddie BANNED

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    INDIA-INVESTMENT-FDI-UN:Firms see India 3rd most-favoured destination: U.N. report
     
  11. IndoCarib

    IndoCarib SENIOR MEMBER

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    Please read the article . It says "Major global companies consider India their third most favoured destination after China and the United States, a UN report said on Thursday, and investment inflows could increase by more than 20% both this year and next."


    here is the UNCTAD report

    http://www.unctad-docs.org/files/UNCTAD-WIR2011-Full-en.pdf
     
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  12. Fanling Monk

    Fanling Monk FULL MEMBER

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    I'm not undermining India's attractiveness and am just pointing out the first report might've made a typo mistake somewhere.
     
  13. ephone

    ephone SENIOR MEMBER

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    Well, it seems that they say one thing and do the other. Just like there are those who in the west always like to demonize China's so-called communism and worship India's democracy.

     
  14. atulya

    atulya FULL MEMBER

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    you made my daysir, oh sorry you made my night.:yahoo:
     
  15. KRAIT

    KRAIT ELITE MEMBER

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    You are confusing economics with politics. FDI and communism/democracy has what type of relation? Its all about business and profit, ROI.