India's Largest Database on New Projects
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September 2006: India has emerged
among the top ten major developing countries in receiving foreign Direct Investment
(FDI). However, it is still lags far behind its neighbour China.
According
to United Nations Conference on Trade and Development’s (Unctad) trade and
development report 2006, FDI inflows to India stood at $5.5 billion in 2004,
making it the tenth largest developing economy in terms of overseas investment
received.
China
led the pack with $60.6 billion of FDI inflows, followed by Hong Kong with $34
billion and Mexico with $18.7 billion. Developing countries across the world
received $275 billion of FDI in 2004, of which the share of the top ten was
$189.8 billion.
However,
India did not figure among the top ten developing countries with the largest FDI
inward stock. Hong Kong had an FDI stock of $456.8 billion, China $245.5 billion
and Mexico, $182.5 billion.
Inward
stock of FDI in India as a percentage of gross domestic product has risen to
5.9% in 2004, from just 0.5% in 1990, indicating the growing importance of
overseas investment in the country’s economy. China, on the other hand, saw
its FDI stock as a percentage of GDP grow to 14.9% in 2004, as against 5.8% in
1990, the report observed.
Source:
PTI