FDI: DESTINATION INDIA
India continues to enjoy a high level of confidence among overseas investors who have invested about $24 billion during the first 10 months of the financial year 2008-09, up 66% compared to the corresponding period last year. In contrast, worldwide, foreign direct investment (FDI) fell 21% last year to $1.4 trillion, estimates the United Nations Conference on Trade and Development (UNCTD).
In the month of January 2009 alone, FDI inflows worth $2.74 billion represented a rise of about 55% year-on-year. China, by contrast, saw a 33% drop in FDI compared to the same month last year as it’s manufacturing-based economy was more negatively affected by tightening global credit, recession and falling corporate profits.
India is expected to close the financial year ended March 31, 2009 with $28 billion of FDI against inflows of $24.5 billion in the previous year. If reinvested earnings of foreign companies are taken in to account, that figure is expected to increase to about $38 billion, up from $34.3 billion in the previous fiscal year.