42% investment experts see India as third most attractive global destination. | |
| Transnational corporations find India the most attractive global business destination after China, according to the World Investment Report 2005 released by Unctad. |
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| The Unctad survey on the foreign direct investment prospects for 2005-06, covering 81 of the world's largest transnational corporations and 74 investment experts, found China was considered the most attractive location by 85 per cent of the experts and 87 per cent of the corporations. |
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| India has been ranked the third most attractive global destination by 42 per cent of the experts and the second most attractive location by 51 per cent of the corporations. |
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"India's high ranking, albeit with 30 per cent fewer responses than China's, is even more remarkable, given that foreign investment inflows to the country have been modest till recently," the survey said.
| MOST ATTRACTIVE BUSINESS DESTINATIONS | | Responses from Experts | Responses from TNCs | | Country | Rating | Country | Rating | | China | 85 | China | 87 | | United States | 55 | India | 51 | | India | 42 | United States | 51 | | Brazil | 24 | Russia Federation | 33 | | Russian Federation | 21 | Brazil | 20 | | (Figures in %) |
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| The United States, Brazil, Russia, the United Kingdom and Germany are some of the other countries that figure among the top 10 business destinations in the survey. |
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| Referring to the findings of the report, Nagesh Kumar, Director-General (research and information system for developing countries), Unctad, said the report had highlighted the reversal of the trend that showed global FDI from 2001 declining. |
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| For the first time, FDI flows have registered an increase of 2 per cent in 2004. Of this, inflows to the developing countries have increased by 40 per cent to $233 billion. |
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| The report pointed out that greenfield FDI was expected to increase as a proportion of all FDI as investments channeled via privatisation are declining and because several countries like India are actively seeking this form of investment through regulatory reforms and incentives. |
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| "Flows to India should continue to increase, especially in steel, telecommunications, infrastructure and finance," it said, adding that the end of the textile trade quotas should also benefit India, Pakistan and Bangladesh in attracting more textiles-related FDI. |
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| The report also noted that proportion of growth in outward FDI would be from Chinese, Indian and South Korean firms, including through large-scale overseas mergers and acquisitions. |
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