India in 7th place in FDI confidence index: Report
06/06/2014 16:03
The world’s biggest economy, the US remains the top destination for foreign direct investment (FDI), a survey by consulting firm T Kearney showed this week. Meanwhile, India has plummeted to seventh spot, its lowest ever ranking in more than a decade as a deepening economic slowdown, policy uncertainty, high inflation and slow pace of reforms dampened sentiment among overseas investors. In 2005, 2007 and 2012, Asia’s third biggest economy was in second spot in the FDI confidence rankings. In 2010, India was ranked in third place in the index. In 2012, FDI inflows into the country fell to USD 25.5 billion from USD 31.6 billion in the previous year. “The cooling-off in investor sentiment we foresaw last year appears to have taken shape, with a two-place drop from 5th to 7th — its lowest rank since 2001," the report said. “Until late 2013, however, no foreign companies moved to enter, daunted by complex requirements, including one for 30 per cent content from small and medium-sized Indian enterprises," the report added. However, with the more growth, investor and business friendly Modi government at the helm of affairs, FDI confidence may revive in the coming months with the BJP government proposing to raise FDI limits in various sectors
06/06/2014 16:03
The world’s biggest economy, the US remains the top destination for foreign direct investment (FDI), a survey by consulting firm T Kearney showed this week. Meanwhile, India has plummeted to seventh spot, its lowest ever ranking in more than a decade as a deepening economic slowdown, policy uncertainty, high inflation and slow pace of reforms dampened sentiment among overseas investors. In 2005, 2007 and 2012, Asia’s third biggest economy was in second spot in the FDI confidence rankings. In 2010, India was ranked in third place in the index. In 2012, FDI inflows into the country fell to USD 25.5 billion from USD 31.6 billion in the previous year. “The cooling-off in investor sentiment we foresaw last year appears to have taken shape, with a two-place drop from 5th to 7th — its lowest rank since 2001," the report said. “Until late 2013, however, no foreign companies moved to enter, daunted by complex requirements, including one for 30 per cent content from small and medium-sized Indian enterprises," the report added. However, with the more growth, investor and business friendly Modi government at the helm of affairs, FDI confidence may revive in the coming months with the BJP government proposing to raise FDI limits in various sectors
