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FOREIGN DIRECT INVESTMENT TO INDIA HAS INCREASED BY MORE THAN 20 PER CENT
Sarid and agencies, October 16, 2006
According to the World Investment Report, released this evening by the United Nations Conference on Trade and Development (UNCTAD), the foreign direct investment (FDI) inflows to South, East, and South-East Asia, including Oceania, reached a new high of US$165 billion in 2005, a 19% increase over 2004.
Although more than two-thirds of the FDI went to China, Hong Kong, Taiwan, South Korea, and Singapore, the report says that India continues to remain a favorite destination due to strong economic growth. FDI inflows to India went up by more than 20 per cent, reaching $ 6.59 billion in 2005. “FDI inflows to India have been gaining momentum in recent years, and the country’s prospects for attracting FDI are promising,” the report concludes.
South Asian press observes that the growth in FDI inflows was spurred by cross-border mergers and acquisitions, especially among the energy companies, which pushed up corporate profits and contributed to the recovery of stock markets. Opening up of the industry to single-brand players, such as construction and communications, notes the Indian Express, has helped India in getting foreign investments.
The UK was the largest recipient, followed by the US. Among developing countries, China and Hong Kong were at the top, followed by Singapore, Mexico and Brazil.
(UNCTAD, World Investment Report 2006; The Hindu, India; Mumbai Mirror, India; Indian Express, India; Hindustan Times, India - October 16, 2006)