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Many US firms plan to incrementally invest in India, China: UBS

A quarter of larger companies surveyed expressed an intention to invest in India

Press Trust of India  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

There is significant potential for cross-border investments to and as large and medium sized plan to incrementally invest in these Asian economies than in Western Europe, says a report.

According to the Evidence Lab USA C-Suite survey within emerging Asia, is the preferred economy, as 40 per cent of larger companies surveyed expressed a likelihood of incremental over the next year, while over a quarter of larger companies expressed an intention to invest in

The survey of 500 corporate leaders in March-April 2017 included questions on where in the globe their corporates might invest incrementally on average, noted that a greater share of larger and medium sized firms plan to incrementally invest in and than in Western Europe.

"...The preferences shown by larger US companies in the Evidence Lab USA C-Suite survey for India, combined with the relative economic weight of that economy and the low share of the stock support the case for currency supporting capital inflows," it noted.

The report further said the is heavily biased towards Western Europe, and and host just 2 per cent of total.

"This suggests the potential for cross-border flows in support of these Asian currencies. We believe the rupee will be supported on the basis of solid FDI flows," the report said.

First Published: Mon, June 12 2017. 15:32 IST
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