India second most FDI destination after China: UN survey

D Ravi Kanth
Geneva, Sep 6 (PTI) India has replaced the US as the
second most important foreign directive investment (FDI)
destination for transnational corporations during 2010-2012,
according to a survey conducted by UNCTAD.
In its latest 'World Investment Prospects Survey
2010-2012', the United Nations Conference on Trade and
Development said transnational corporations remain buoyant
about investment prospects in China, India and Brazil.
According to the survey, India is the most important
FDI destination next only to China.
India replaced the US as the second most important
destination for FDI by transnational companies last year
following severe recession in the US. In the last survey, the
US was the second most important destination and this time the
country has slipped to fourth position.
Global FDI flows are expected to jump increase from
USD 1.2 trillion this year to USD 1.3-USD 1.5 trillion in 2011
and USD 1.6-2.0 trillion in 2012.
"The results point to a recovery in global FDI flows
in 2010 and further growth in 2011 and 2012," UNCTAD said.
Basing its results on the responses from 236 leading
transnational corporations and 116 investment promotion
agencies, it forecasts an upswing in the international foreign
direct investment flows.
"The crisis was less destructive to FDI than had been
feared" despite the worsening economic situation and growing
recession in the industrialised countries, UNCTAD said.
Notwithstanding the squeeze in the investment budget
during the worst economic crisis in the last eighty years,
there has been perceptible shift in the TNC's geographical
focus to developing and transition economies.
The emerging countries weathered the downturn better
than their industrialised country counterparts. Further, the
developing countries are leading the global recovery and are
also contributing to the TNC strategies. PTI