US FDI 2 LAST

Indian cities like Ahmedabad, Bangalore, Chennai, and
Hyderabad are other key destinations, the report said.
Although the global crisis slowed the rate of FDI growth
in India in 2009, it also helped reinforce India's position
among global investors, it said.
Since most global firms found that their Indian and
Chinese operations considerably outperformed their developed
market investments, they now accord even greater strategic
value to these two destinations, the report pointed out.
Noting that India's attractive GDP growth rate and
superior market performance are likely to attract growing FDI
inflows, the report said CEOs consistently rank India as one
of the world's top 3-5 preferred investment destinations in
recent global surveys.
"Despite the crisis, a number of leading global firms –
including Volkswagen, Telenor, LG, Cairn, and a number of IT
companies - have announced large-scale investments in various
sectors.
In contrast to the favourable development of economic
drivers of inward FDI, the security-induced tightening of
approval procedures and oversight policies might limit the
potential inflow of FDI, as might the difficulty in obtaining
operational clearances," it said. PTI