FDI inflows into India surge to $42 billion

FDI inflows into India surge to $42 billion

The World Investment Report, 2009, prepared by United Nations Conference on Trade & Development (UNCTAD), said FDI flows to India were driven by investments by leading transnational corporations in a range of manufacturing and service industries.

The report, which was released here, on Thursday, also appreciated China as it became third largest FDI recipient country after the US and France. The report estimated that FDI inflows would fall from about US$1.7 trillion in 2008 to below US$1.2 trillion in 2009 due to worsening of financial and economic crisis.

“Recovery is expected to be slow in 2010, reaching no more than $1.4 trillion, but gathering momentum in 2011 to approach $1.8 trillion,” it said.

While FDI inflows declined globally and in developed countries, where the financial crisis originated, flows to developing countries and the transition economies of South-East Europe and the Commonwealth of Independent States (CIS) continued to rise last year.

This reflected, in part, a delay as the  downturn worked its way through the economies of developing countries and only more slowly affected their exports.

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