Thursday 30 January 2014

FDI in India increased by 17% to $28 billion in 2013: United Nation Report

As per the United Nation report, foreign direct investment (FDI) in India grew by 17 percent in 2013 to $28 billion in spite of unexpected capital outflows in the middle of the year. However, India's FDI ranking has slipped by one notch to 16th position in 2013 among the top 20 global economies receiving FDI. The report further added that risks related to the US Fed tapering of quantitative easing and uneven levels of growth, fragility and unpredictability in a number of economies could dampen the FDI recovery.

Referring to global growth in FDI, the United Nation report highlighted that foreign investment across the world rose to highest levels since the start of the global economic crisis in 2008. Global FDI increased by 11 percent in 2013 to an estimated $1.46 trillion, with the major share going to developing countries. FDI flows to developing economies reached to a new high of $759 billion dollars, which account for around 52 percent in the reported period. Among the developing nations, the BRICS - Brazil, Russian Federation, India, China and South Africa continued to be strong performers in attracting FDI with a 22 percent share of global FDI, which was twice that of their pre-crisis level. Further, total inflows to these five leading emerging economies reached $322 billion in 2013, 21 percent higher than 2012. South Africa outperformed other emerging countries within the group, with FDI inflows rising by 126 percent in the reported period. China again ranked second in the world for FDI inflow with estimated foreign investment at $127 billion, including both financial and non-financial Sectors.

On the other hand, FDI inflows to developed countries increased by 12 percent to $576 billion, however with around 39 percent share, developed countries remained at an historical-low for the second consecutive year. Among developed nations, some European nations witnessed positive signs of recovery.

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