India to receive $20 bn FDI a year till 2011: Report
The report by Economist Intelligence Unit states that, China, would attract average foreign investments of $86.8 bn a year till 2011. Equity Challenge
By PTI |
NEW YORK: India is likely to receive foreign direct investment of $20.4 billion every year during 2007-11, even as executives around the world see developing countries as having "heightened political risk".
According to a report by Economist Intelligence Unit, compiled in cooperation with Columbia Programme on International Investment (CPII), there is "significantly heightened political risk perceptions among the investors".
This, the report said, is especially in the case of emerging markets where all four forms of political risk - political violence, FDI protectionism, threats associated with geo-political tensions and government instability - are seen increasing over the next five years.
For developed countries also, there is a widespread concern about rising FDI protectionism, the threat of terrorism in the United States and Britain and impact of geo- political tensions ranging from effects of possible conflict with Iran and Islamic radicalism to Russian-Western frictions.
The report projected that India's regional competitor, China, would attract average foreign investments of $86.8 billion a year till 2011.
Last year, the two countries had received FDI worth $17.5 billion and $78.1 billion respectively. In percentage terms, India received 1.36 per cent of the world's total FDI as against China's 5.79 per cent.
The report predicts the US to retain its top slot in the list of FDI recipients with total inflow of $250.9 billion per year. Britain could witness a fall in FDI inflow to $112.9 billion per year over the five-year period, against $137.7 billion last year.
According to a report by Economist Intelligence Unit, compiled in cooperation with Columbia Programme on International Investment (CPII), there is "significantly heightened political risk perceptions among the investors".
This, the report said, is especially in the case of emerging markets where all four forms of political risk - political violence, FDI protectionism, threats associated with geo-political tensions and government instability - are seen increasing over the next five years.
For developed countries also, there is a widespread concern about rising FDI protectionism, the threat of terrorism in the United States and Britain and impact of geo- political tensions ranging from effects of possible conflict with Iran and Islamic radicalism to Russian-Western frictions.
The report projected that India's regional competitor, China, would attract average foreign investments of $86.8 billion a year till 2011.
Last year, the two countries had received FDI worth $17.5 billion and $78.1 billion respectively. In percentage terms, India received 1.36 per cent of the world's total FDI as against China's 5.79 per cent.
ADVERTISEMENT
The report predicts the US to retain its top slot in the list of FDI recipients with total inflow of $250.9 billion per year. Britain could witness a fall in FDI inflow to $112.9 billion per year over the five-year period, against $137.7 billion last year.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
