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Jan 31, 2015

FDI inflows beat global trends, surge 26%

U.S. fell to the third slot, with inflows plummeting to almost a third of the 2013 level
Foreign direct investment (FDI) inflows to India increased by about 26 per cent to $35 billion in 2014, despite macroeconomic uncertainties and financial risks, according to a United Nations report on global investments, released on Thursday.

China, however, received inflows worth $128 billion and with a modest increase of 3 per cent, went on to become the world's largest recipient of FDI. Brazil, another BRICS country and an emerging market like India, received $62 billion of FDI inflows.

The U.S. fell to the third position, with inflows plummeting to almost a third of the 2013 level. Global FDI flows declined 8 per cent to an estimated $1.26 trillion, down from a revised $1.36 trillion in 2013.

Among the top five FDI recipients in the world, four are developing economies — Hong Kong ($111 billion), Singapore ($81 billion) and Brazil ($62 billion).

Fragile economy
Global FDI inflows fell due to the fragility of the global economy, policy uncertainty and geopolitical risks, the latest ‘Global Investment Monitor’ report released by the United Nations Conference on Trade and Development said.

Source - The Hindu

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