World FDI flows to cross $1.1 t

CHENNAI, DEC. 7. World FDI inflows are expected to exceed $1.1 trillion this year, up 14 per cent over 1999, according to preliminary estimates released today by the United Nations Conference on Trade and Development (UNCTAD). This dramatic increase represents a doubling in just three years; only a decade ago, total annual flows were about $200 billion. More than four fifths of this year's FDI inflows were to developed countries. Increased flows to these countries resulted mostly from cross- border mergers and acquisitions (M&As).

Total FDI inflows to developing countries in 2000 remained at the same level as in the previous year, but those countries' share in the world total fell to 17 per cent. This decline has continued since 1997. The largest slump within that category in FDI flows this year was observed in Argentina (down by $15 billion).

Flows to China and Brazil - the first and second largest FDI recipients among developing countries - were largely unchanged. However, in anticipation of China's entry into the World Trade Organisation, approved investments in China are already on the rise. Overall, Africa and Asia both gained in FDI flows, while flows to Latin America and the Caribbean declined.

Domestic inflows touch $3.5 b in Jan.-Oct.

By Our Special Correspondent

NEW DELHI, DEC. 7. Cumulative inflows of FDI during January to October this calendar year are estimated at $3.5 billion against $2.4 billion in the corresponding period in 1999.

According to an official release actual inflows of foreign direct investment (FDI) into India during October at $626.7 million has been the highest so far for any month during the calendar year 2000. The previous high in actual inflow this year was in August at $460.7 million. The actual inflow in rupee terms in October is estimated at Rs. 2,694.80 crores.

The release says considerable interest has been shown by foreign investors from all countries after the announcement of the country's liberalised FDI regime.

The approval-inflow realisation percentage in terms of rupees during the current year (January-October) is 47.23 per cent. Over 40 per cent of approvals during the period from January 1991 to September 2000 are in priority areas.

Send this article to Friends by E-Mail

Section  : Business
Previous : Rupee holds steady
Next     : Aptech Internet's new initiative