New Delhi: India has replaced the US as the second most important foreign direct investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted by United Nations Conference on Trade and Development (UNCTAD).
In its latest 'World Investment Prospects Survey 2010-2012', the UNCTAD said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.
India replaced the US as the second most important destination for FDI by transnational companies last year following severe recession in the US. In the last survey, the US was the second most important destination and this time, the country has slipped to the fourth position.
Global FDI flows are expected to increase from $ 1.2 trillion this year to $ 1.3- $ 1.5 trillion in 2011 and $ 1.6-2.0 trillion in 2012. "The results point to a recovery in global FDI flows in 2010 and further growth in 2011 and 2012," UNCTAD said.
Basing its results on the responses from 236 leading transnational corporations and 116 investment promotion agencies, it forecasts an upswing in the international foreign direct investment flows.
"The crisis was less destructive to FDI than had been feared despite the worsening economic situation and growing recession in the industrialised countries," UNCTAD said.
Notwithstanding the squeeze in the investment budget during the worst economic crisis in the past 80 years, there has been perceptible shift in the TNC's geographical focus to developing and transition economies.
The emerging countries weathered the downturn better than their industrialised country counterparts. Further, the developing countries are leading the global recovery and are also contributing to the TNC strategies.
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