Developing nations emerge as major FDI destinations: Assocham

NEW DELHI: Major developing economies like India and Saudi Arabia have emerged as the most attractive destinations for FDI after the global economic meltdown, industry body Assocham said today.

"The FDI inflows into the developed countries registered a sharp decline of about 30 per cent in 2008, while the developing nations have experienced an increase of about 17 per cent and sustained their uninterrupted inflows," it said.

It said that China is leading as the priority host economy for FDI amongst the developing economies and also the second largest FDI recipient in the world.

Besides, Hong Kong, Russia, Saudi Arabia and India are other countries attracting maximum FDI, it added.

"The potential impact of the economic crisis enforce the shifting of geographical focus to developing and transition economies because of their much better economic performance than the developed countries," Assocham said.

Factors such as weaker economic growth in developed countries and abnormal functioning of the world credit are putting pressures on the pace of recovery of FDI flows.

India has received $ 8.88 billion during April-August 2010-11.