Macroeconomic uncertainties major concern for foreign investors; UNCTAD
says
25/06/2014 16:54
The uncertain macro-economic scenario plaguing Asia’s third biggest economy is a major worry for foreign investors, UN agency, the United Nations Conference on Trade and Development (UNCTAD) said on Tuesday. India slipped one spot to fourth place in the latest rankings of the world’s top FDI attractive destinations. FDI inflows in India rose by 17 per cent to USD 28 billion in 2013 over the previous year. "India experienced a 17% increase in FDI inflows in 2013... but macroeconomic uncertainties remain a major concern for investors. The opening up of multibrand retail in 2012 has not generated the results that were expected," the report said. The Indian economy expanded at 4.7 per cent in FY 2013-14, the second straight fiscal year when expansion stood at below the 5 per cent mark. Slow progress on economic reforms, investment slowdown and lingering infrastructure bottlenecks may have been attributed to the reduced appeal of India as one of the world’s leading FDI destinations. "I believe our potential growth rate is 8%. And, to get there we need to develop resources. And, what we cannot generate domestically must come from outside and if it comes from outside, then we will prefer it in the form of FDI rather than foreign institutional investment, Finance Secretary Arvind Mayaram said, according to media reports.
25/06/2014 16:54
The uncertain macro-economic scenario plaguing Asia’s third biggest economy is a major worry for foreign investors, UN agency, the United Nations Conference on Trade and Development (UNCTAD) said on Tuesday. India slipped one spot to fourth place in the latest rankings of the world’s top FDI attractive destinations. FDI inflows in India rose by 17 per cent to USD 28 billion in 2013 over the previous year. "India experienced a 17% increase in FDI inflows in 2013... but macroeconomic uncertainties remain a major concern for investors. The opening up of multibrand retail in 2012 has not generated the results that were expected," the report said. The Indian economy expanded at 4.7 per cent in FY 2013-14, the second straight fiscal year when expansion stood at below the 5 per cent mark. Slow progress on economic reforms, investment slowdown and lingering infrastructure bottlenecks may have been attributed to the reduced appeal of India as one of the world’s leading FDI destinations. "I believe our potential growth rate is 8%. And, to get there we need to develop resources. And, what we cannot generate domestically must come from outside and if it comes from outside, then we will prefer it in the form of FDI rather than foreign institutional investment, Finance Secretary Arvind Mayaram said, according to media reports.
