Friday, September 11, 2009

India: An emerging source for FDI?

Outbound Foreign direct investment from India has increased at annual growth rate of 64 per cent in the last five years. India's FDI to the US was USD 4.5 billion in 2008 and USD 2.8 billion in 2009.Inbound FDI showed a 56 percent increase to USD 3.51 billion from USD 2.25 billion in the year-ago month.
Increasing outbound FDI establishes India as a key global player. It can be for increasing focus on geographical expansion, transfer of technology, access to raw materials and moving up the value chain. But it definitely points towards as start of reversal of power relations between countries.

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