India among world's top 3 preferred investment destination

Lalit K Jha
Washington, Mar 13(PTI) India is among the world's top
three preferred investment destination, but equity caps limit
the size of potential inflows, according to a Columbia
University report.
The report cited liberalisation in FDI policy and
several economic sectors, a globally competitive workforce,
and rapid GDP and market growth as the main drivers of foreign
investment in India.
Yet, it said equity caps limit the size of potential new
inflows and national security concerns might prompt more
oversight of FDI approval processes.
According to the 15-page report 'Inward FDI in India and
its policy context' India is also the 13th largest in terms of
foreign investment inflows, which have risen 15-fold since
2000.
The report said while investors initially concentrated on
manufacturing, power and telecommunications, they now focus on
services.
Among other visible trends, firms in developed countries
dominated investment in the 1990s, but in the past decade
developing country investors have also become significant, it
said.
A third of the post-2000 inflow is invested around
Mumbai, a manufacturing hub, and one-fifth around Delhi, a
services hub. MORE PTI