India a favourite for FDI

Special Correspondent

NEW DELHI: India, having attracted foreign direct investment (FDI) worth $5.3 billion in 2004, has emerged as one of the three most attractive investment destinations globally, according to UNCTAD's `World Investment Report, 2005' released here on Thursday.

The report has noted that two surveys conducted by the United Nations Conference on Trade and Development on the responses of experts and transnational corporations (TNCs) placed China, India and the United States as the most favoured FDI destinations.

Interestingly, while the experts positioned India behind China and the U.S., the TNCs ranked India as the second best destination, behind China but ahead of the U.S.

In all, 87 per cent of the TNCs and 85 per cent of the experts considered China as the most attractive FDI destination, while 51 per cent of the TNCs and 42 per cent of the experts viewed India as the most favoured FDI destination.

High ranking

"India's high ranking, albeit with 30 per cent few responses than China's is even more remarkable, given that FDI flows to the country have been modest until recently,'' the report said.

Releasing the report here, the Research and Information System for Developing Countries (RIS) Director General, Nagesh Kumar, said the survey findings pointed to the fact the TNCs are "taking India much more seriously and are keen in participating in the country's success story.''

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