Country retains 2nd ranking as preferred FDI destination

26 Sep '08

2 min read

Recently the World Investment Report 2008 was released during the United Nations Conference on Trade and Development (UNCTAD). The report states that overseas entrepreneurs still prefer India as the second most preferred destination for making investments. Experts believe that, the India will continue to attract investors till 2010, and is only second to China.

And according to another survey conducted in Japan, many of the Japanese transnational manufacturing enterprises find India better for establishing their business base, in comparison to China.

On the priority index of important foreign investment locations, US is at third place, Russia at fourth followed by Brazil, Vietnam, Germany, Canada and UK.

Last year, India received the fourth largest FDI inflow which was nearly US $22.95 billion, showcasing a significant hike of 16.7 percent when compared to 2006. The other countries that came ahead of India and witnessed huge inflow of FDI's in 2007 are China, Hong Kong and Singapore.

During the same period, India was also recognized as the fourth-largest source of FDI in Asia. This can be traced from the fact that many Indian enterprises invested nearly $13.64 billion in foreign countries last year, as against $12.84 billion in 2006, representing a boost of 6.23 per cent.

Experts are of the opinion that this increase in FDI is the result of growth in various sectors that witnessed a significant growth like retail and also due to merger and acquisitions by global investors.

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