Outward FDI flows from India rising

Outward FDI flows from India, particularly in manufacturing and IT services, have increased since the late 1990’s even though the count...

Outward FDI flows from India, particularly in manufacturing and IT services, have increased since the late 1990’s even though the country’s firms have been investing abroad for many years, a new UN report has said.

India’s outward FDI stock had grown from $0.6 billion in 1996 to $5.1 billion in 2003, taking India to 14th place in terms of outward FDI stock among developing economies, United Nations Conference on Trade And Development said in a report.

Its annual average outward FDI flows during 2001-2003 reached $1.1 billion, which were comparable to those of Malaysia and almost double those of Greece. Most of India’s FDI is in manufacturing, but it has begun to grow rapidly in IT services, particularly through mergers and acquisitions.

Story continues below this ad

‘‘The increasing competitiveness of Indian firms and their interest to expand globally, particularly in IT-related services and pharmaceuticals, are driving its outward FDI growth,’’ said Karl P. Sauvant, director of UNCTAD’s investment division.

Access to markets, natural resources, distribution networks, foreign technologies and strategic assets like brand names, are the main motivations.

The liberalisation of government policies and relaxation of regulations on FDI abroad have also helped, the report said.

Indian outward FDI, it said, is expected to grow, in particular in IT and software services.

Canada, UK and Australia formally recognise a Palestinian state

World6 hr ago

The UK, Canada, and Australia have recognized Palestine as a state, going against the US and Israel's opposition. British PM Starmer aims to revive peace without Hamas and hostage release. Canada and Australia also recognize Palestine, condemning terrorism. Over 145 UN members recognize Palestine, with France likely to join soon.

View all shorts

Live Blog