China continues to lead India in FDI

Ulhas Joglekar uvj at
Fri Sep 21 10:12:33 MDT 2001

The Times of India


China continues to lead over India in FDI

NEW DELHI: India, though the highest recipient of foreign direct investment
among South Asian nations, is far behind China and Hong Kong, which together
attracted 50 times more, despite a projected slowdown in FDI flow world over
this year.

China was able to attract $40.77 billion of FDI, while Hong Kong garnered
$64.44 billion, thus together accounting for $105.22 billion in 2000
compared to India's figure of $2.13 billion during the period, said a
recently-released United Nations Conference on Trade & Development report.

The report also said FDI, which soared 18 per cent to a record $1.3 trillion
last year, would decline this year since mergers and acquisitions -- having
reached the $1.1-trillion figure -- were likely to flatten out on account of
an overall slowdown in the economic growth.

During 1995-2000, Hong Kong (China) posted a whopping 937.68 per cent growth
in FDI inflows to tick $64.45 billion compared to $6.21 billion in 1995,
while China registerd a near 14 per cent growth to touch $40.78 billion in
2000 compared to $35.85 billion in 1995, the report said.

The report made a special note on China's initiatives as it pointed out that
nearly 400 of the Fortune 500 firms had invested in over 2,000 projects in
that country.

"Most recently, research and development activities emerged a bright spot in
China for FDI with over 100 R&D centres established by such TNCs --
including Microsoft, IBM, GM, Motorola, Lucent-Bell, Samsung, GE, Nortel,
Siemens, Nokia and Intel," it said.

The Unctad report said the FDI inflows to Pakistan fell over 57 per cent to
$0.31 billion in 2000 compared to $0.72 billion in 1995.

Although FDI inflows to Pakistan peaked in 1996 at $0.92 billion, they later
fell to $0.51 billion in 1998 before rising to $0.74 billion in 1999 and
finally fell to the lowest-ever figure in the past five years to $0.31

However, for Indonesia, an erstwhile East Asian tiger, it was a continuous
fall in FDI inflows to negative $4.55 billion in 2000 compared to $4.35
billion in 1995, the report said.

Malaysia also witnessed a 4.71 per cent fall in the FDI inflows to $5.54
billion last year against $5.82 billion in 1995, while for Sri Lanka and
Thailand it was a steep increase in the inflows.

FDI inlows to Sri Lanka witnessed an over 225 per cent increase to $0.22
billion in 2000 compared to $0.07 billion in 1995, despite its internal

There was 22.16 per cent rise in FDI inflows to Thailand during 1995-2000,
the report said pointing out that FDI inflow stood at $2.45 billion in 2000
against $2 billion in 1995.

For Bangladesh, it was all successive development every year from 1995 to
1998 since from a mere $0.002 billion in 1995, it rose to 0.02 in the
successive year, then to $0.14 billion in 1997, $0.20 billion in 1998, $0.18
billion in 1999 and finally at $0.17 billion last year.
( PTI )

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