Foreign Direct Investment into India grew by 17% to $ 28 billion in spite of unexpected capital outflows in the middle of the year, said UNCTAD, in their latest report titled “Global FDI reaches pre-crisis levels in 2013, outlook optimistic for 2014-2015.” India is ranked 16th among the top 20 global economies in the world. In fact India has received total foreign investment of $306.88 billion since the year 2000 with 94 % of the amount being received in the last nine years, according to the government.
Between 1999- 2004, India received US$ 19.52 billion of foreign investment which increased to US$ 114.55 billion between 2004-09, and increased further to US$ 172.82 billion between 2009- September 2013.
The BRIC countries continued to be top performers in attracting Foreign Direct Investment (FDI) in 2013, which almost doubled from the pre-crisis levels. The total inflow to the BRICS reached $322 billion, up 21% from last year. Overall, the BRICS now account for over one fifth of global FDI with China at the second spot, Russia (3rd), Brazil (7th).
While the United States had the highest FDI inflows in spite of a decline in funds, inflows to China – both financial and non-financial sectors – were at an estimated $127 bn, closing the gap with the United States to some $ 32 bn.
While the global foreign direct investment (FDI) inflows rose by 11% in 2013, to an estimated US$1.46 trillion, a major part of this went towards developing countries, which reached a new high of $759 bn.
FDI inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies including in the aviation sector, as well as through establishment of new companies. It has indirect multiplier effect on other related sectors also, and thereby stimulates economic growth. The inflows also have a positive impact on the current account balance.
Download the report here.