FDI Flow – to touch $ 8 billion in 2007

January 24, 2007	(Be the first to rate this story!)  Loading ...
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The Institute of International Finance (IIF) report on emerging markets tabled earlier this week observed the positive impact of major mergers and acquisitions by corporate giants overseas on FDI in India.

The IIF expects FDI in India to rise to $8 billion in 2007 from $6.5 billion in the last year. Mergers and acquisitions by corporate majors shore up increased investment in growing markets, and India is well poised to avail of their investment plans.

The IIF is the global association of financial institutions with more than 360 members in over 60 countries. Its membership includes some of the world’s largest commercial banks and investment banks, insurance companies and investment management firms.

The report on emerging markets observed high levels of growth in India that have secured formidable foreign investor interest. The healthy upswing in the share market has been encouraging. The bustle in India’s property market has played a crucial role in capital inflows, enthusing financial investors with the confidence to reap the benefits of the boom.

The low interest rates and increasing financial integration has played a constructive role too in facilitating fund inflow. But, the report warns, there are potential downside risks in emerging markets’ finance, which require more vigilant risk-management approaches by investors and sustained sound economic policies by the government.

While net direct investment into India is rising, the IIF report pointed out that on the outflow side annual investment is set to jump nearly three-fold to $3 billion as Indian firms set up production, marketing and distribution networks overseas to achieve global scales.

News Published Under:   Foreign Direct Investment in India |

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