Foreign Direct Investment (FDI) — where do we stand?
The recent United Nations report has shown India in a better light with a 20 percent growth in FDI inflows at $ 6.59 billion in the last fiscal.
Despite these figures, I find it still far less than China which saw over 20 percent growth and received $72.406 billion.
However, the amount of India’s FDI inflow too cannot be overlooked completely. It has received more than two-third of the total FDI coming to South Asia, which got $9.765 billion of FDI last year.
I feel India’s lack of good infrastructure, lengthy paperwork, and snail-slow authorities have put off countless investors. With the authorities now seriously looking to make the necessary amends in these crucial areas, I will not be surprised if the figures in the years to come show an upward march.
The fact that United Kingdom was the largest recipient of FDI flows in 2005 as it received $164.53 billion of foreign investments shows what superior infrastructure and investor-friendly laws can do.
India, I believe, must also follow the same pattern of working. Moreover, the elements within the government that are against FDI should also now understand that unless we make an effort in roping in investors, we will not be globally viable.
The recent United Nations report has shown India in a better light with a 20 percent growth in FDI inflows at $ 6.59 billion in the last fiscal.
Despite these figures, I find it still far less than China which saw over 20 percent growth and received $72.406 billion.
However, the amount of India’s FDI inflow too cannot be overlooked completely. It has received more than two-third of the total FDI coming to South Asia, which got $9.765 billion of FDI last year.
I feel India’s lack of good infrastructure, lengthy paperwork, and snail-slow authorities have put off countless investors. With the authorities now seriously looking to make the necessary amends in these crucial areas, I will not be surprised if the figures in the years to come show an upward march.
The fact that United Kingdom was the largest recipient of FDI flows in 2005 as it received $164.53 billion of foreign investments shows what superior infrastructure and investor-friendly laws can do.
India, I believe, must also follow the same pattern of working. Moreover, the elements within the government that are against FDI should also now understand that unless we make an effort in roping in investors, we will not be globally viable.