randomGuy Posted October 3, 2015 Posted October 3, 2015 India has emerged as the most favoured destination for foreign direct investment (FDI) in 2015 so far, outpacing China and the US, London-based business daily Financial Times (FT) said in a report on Tuesday. FDI inflows into India during January-June stood at $31 billion, ahead of China’s $28 billion and the US’s $27 billion, said the FT report under the headline ‘India grabs investment league pole position’. Separately, India also jumped 16 notches to 55 among 140 countries in the World Economic Forum’s Global Competitiveness Index that ranks countries on the basis of parameters such as institutions, macroeconomic environment, education, market size and infrastructure among others. According to data from FDI Markets, an FT data service, FDI inflow into India grew 47% to $24 billion in 2014, a year when many other major FDI destinations posted declines. This could shape up to be an even better year for investment into India, FT said. “India is tracking well ahead of where it was at this time last year: it has more than double its mid-year investment levels, attracting $30 billion by the end of June 2015 compared to $12 billion in the first half of last year,†it said. A ranking of top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US, FT added. The report came on a day India’s Foreign Investment Promotion Board, the nodal authority that scrutinises overseas investment proposals, cleared 18 proposals worth about Rs 5,000 crore. It also followed Prime Minister Narendra Modi’s meetings these last few days with top global CEOs in the US where he made a strong pitch to turn India into an investment hotspot. The government’s push for manufacturing comes at a time many global companies are searching for an alternative to China as costs and risks there rise. India has also become the world’s fastest growing major economy ahead of China, where recent shocks have sent ripples across the world. Last year, the government launched the Make in India initiative vowing to remove bureaucratic sloth, make the country more investor-friendly and rectify processes that has kept the country almost at the bottom — ranked 142 — of World Bank’s ‘ease of doing business’ index.http://www.hindustantimes.com/business/india-emerges-top-fdi-destination-leaving-behind-china-us-in-2015/story-7Dno24ijpNUtLjehW1gnGI.html Proactive engagements with CEOs world over by PM Modi to sell the India story is bearing fruit it seems.
amiret Posted October 3, 2015 Posted October 3, 2015 " BEIJING, July 21 (Reuters) - China drew $68.4 billion in foreign direct investment for the January-June period,...." China's FDI may hit an all-time high of $125 billion this year barring no sharp changes in the external environment, the official Xinhua news agency quoted Vice Minister of Commerce Wang Shouwen as saying. China received $ 68.4 Billion for H1 2015 and is expected to received $125 Billion in FDI for 2015. Confusion related to FT article and consequent Indian Govt propaganda : Economic Times " A recent report by a data consultancy owned by the Financial Times created a stir by estimating that India is now the most favorite destination for foreign direct investment, beating China and the USA. The fine print indicates that they are talking about "estimated capital expenditures" in greenfield, that is, new ventures. By this estimate, India attracted $31 billion compared to China's $28 billion in the first half of 2015. RBI data for foreign investment flows does not appear to reflect this, causing much puzzlement in India. The total foreign direct investment that flowed into India between January and June 2015 is pegged at $20.6 billion."
Malcolm Merlyn Posted October 3, 2015 Posted October 3, 2015 [uSER=23265]amiret[/uSER] So Indian govt is now doing propoganda via Financial Times of London. What a joke!
randomGuy Posted October 3, 2015 Author Posted October 3, 2015 China received $ 68.4 Billion for H1 2015 and is expected to received $125 Billion in FDI for 2015. Confusion related to FT article and consequent Indian Govt propaganda : Economic Times These are not the Net flows, these are just the inflows and do not take into account the FDI outflows. Refer to the following article from last year- http://www.theguardian.com/news/datablog/2014/jun/24/foreign-direct-investment-which-countries-get-the-most "FDI outflows from China grew to $101bn in 2013 and are expected to surpass its inflows within three years." Company 'A' of country 'x' buying into company 'B' of country 'y' and in turn, Company 'C' of country 'y' buying into company 'D' of country 'x' doesn't make any difference on ground. For ex. India's Tata motors acquired UK's Jaguar Land Rover and UK's Diageo bought into India's United spirits - it doesn't make much difference on ground if the inflows and outflows are the same and cancel each other out. But FDI in greenfield projects is most probably more relevant which is why it is being reported.
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