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.