India:Third Largest Recipient of FDI

In recent times a lot of attention has been given to FIIs and the extent to which their inflows or outflows have impacted the stock markets. But if India has to sustain its high level of growth and see more development, what it really needs is FDI. Foreign direct investment, that is. And in this regard, there are some positive developments. The United Nations Conference on Trade and Development (UNCTAD) believes that India would emerge as the third largest recipient of FDI for the three-year period ending 2012.

Infact, the country did very well in 2009 too. The FDI that it received last year totaled to US$ 34.6 bn. This catapulted it to the list of top 10 countries to have the highest FDIs. Indeed, India has been growing at a strong pace in the last few years. But there is scope for more growth. Infrastructure has to be ramped up and developments in many areas need to take place. And so, FDIs are certainly welcome. After all it is not 'hot money' prone to the whims of market movements. But is long term in nature with the potential to do the country some good.

New Dawn: Launch of Africa Business Cell

July 21, 2010 became a historic day for IIFT as it became the first B-School in India to have an exclusive Africa Business Cell. An entirely a student initiative, it aims at promoting Africa which is beyond war, genocide and famine. It primarily aims at

• Increasing awareness about the vast business opportunities in Africa among the student community of IIFT
• Enhanced interaction among IIFT faculty & students, and leading African & Indian businesses and government officials

The inauguration ceremony was followed by a panel discussion on the theme, ‘India as partner of Africa in growth.’ The panelists included The High Commissioner Designate of Rwanda, The Charge d’affaires, The Embassy of Ethiopia, The High Commissioner of Gambia, The Ambassador of Tunisia, The High Commissioner of Eritrea and The General Manager, The Triton Group.

According World Economic Forum Report (2009), between 2001 and 2008, growth in Gross Domestic Product of the continent of Africa pegged an average of 5.9% annually. This was accompanied by substantial inflows of FDI (foreign direct investment), leading to almost doubling of FDI stock between 2003 and 2007. The McKinsey Quarterly Report 2010 also speaks of how macroeconomic reforms have reduced inflation, improved regulatory environment and opened economies to international business and trade. In this context, Africa offers immense business opportunities in agricultural commodities sourcing and trading, consumer goods, oil & natural gas, automobiles, education, health care, etc.


No wonder such an initiative focusing on Africa is going to bring immense learning and growth opportunities.Kudos to the Africa Business Cell Team and IIFT.