India, China top FDI destinations: report

Developing country investors also are likely to be responsible for more than 54% of the investments greater than $ 500-mn over the next three years.

DURBAN: India and China are among the top destinations for Foreign Direct Investments while the world's centre of power continues its "perceptible shift" from developed to developing markets, according to a report released on Thursday by a global management consulting firm.

The two South Asian neighbours are among the 25 most attractive FDI destinations, according to Foreign Direct Investment (FDI) Confidence Index by AT Kearney.

Emerging markets also have registered the strongest investor optimism, with India, China, Brazil, the United Arab Emirates and Vietnam experiencing the most positive change in investment outlook during the last year, the firm said.

"While China and India remain the top destinations for first-time investments overall, developing country investors are more bullish about new markets such as Vietnam, Brazil and South Africa, while developed market investors tend to stick to familiar markets," said FDI Confidence Index manager, Janet Pau.

The world's centre of power continued its "perceptible shift" from developed to developing markets, the firm said, adding developed countries are competing with developing countries for investment capital, and developing countries are increasingly winning out.

"Developing country investors also are likely to be responsible for more than half (54 percent) of the investments greater than $ 500-million over the next three years," it said.
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