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FDI Dips in India

Foreign investors are shifting to more attractive emerging markets, such as Thailand and Brazil.

By March 12, 2011 at 1:10 PM
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Foreign direct investment in India, among the darlings of international investors during the past two years, fell by almost one-third in 2010 to $24 billion. Foreign investors took $2 billion out of the Indian stock market in the first six weeks of 2011, against a record $29 billion in net inflows in 2010.

 
Analysts attribute the decline to rising inflation, currently running at 8 percent, and highly publicized corruption scandals. Foreign investors are shifting to more attractive emerging markets, such as Thailand and Brazil, which experienced a 16 percent growth in FDIs in 2010.

 

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Business | Magazine | March 2011

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