With $38 billion FDI in 2018, India pips China for the first time in 20 years

[HariPrasad]

With $38 billion FDI in 2018, India pips China for the first time in 20 years
Business

Updated Dec 28, 2018 | 12:41 IST | ET Now Digital




China has historically been the favourite FDI destination among emerging markets

Representative image

New Delhi: The year 2018 has been very good for the Indian economy so far as foreign direct investment (FDI) is concerned. According to a report in Economic Times, for the first time in two decades, India got more foreign inflows in 2018 than China.

According to the business daily, stable fundamentals of the country, a bankruptcy code and new opportunities in sunrise sectors helped India attract $38 billion in FDI, higher than China's $32 billion this year.

It may be noted that China has historically been the favourite destination among emerging markets for global funds. But this year India saw 235 deals amounting to $37.7 billion, highest ever for the country, beating China, the ETreport said citing data from Dealogic, a global M&A and capital markets data provider. The trade war between China and the US is seen as a major reason for the FDI slowdown to China.

“India has had a busy M&A calendar in 2018 and we will continue to see good traction in inbound M&As,” the publication quoted Kalpana Morparia, chief executive for South and Southeast Asia at JP Morgan Chase & Co as saying. “Given India’s demographics, the e-commerce story, the way India has leapfrogged the several stages of technological revolution, we expect a lot of activity in the technology and financial services space going forward,” Morparia added.

Global investors typically focus on India despite short-term uncertainty over the political climate, be it state or federal elections, Sonjoy Chatterjee, chairman, Goldman Sachs in India told ET.

The biggest deal that drove FDI flows to India this year is Walmart's $16 billion buyout of Flipkart. Experts believe technology-driven consumer retail and financial services spaces are likely to see substantial M&A activity in the near future.

Other than ecommerce, asset divestment happening because of the new bankruptcy framework is also attracting foreign investors with deep pockets to deploy funds in the country, mainly in the manufacturing sector, the business daily said.

https://www.timesnownews.com/busine...ig-discounts-will-vanish-for-consumers/338148

 

[Shankranthi]

Very bad, very sad.

 

[bobsm]

With $38 billion FDI in 2018, India pips China for the first time in 20 years
Business

Updated Dec 28, 2018 | 12:41 IST | ET Now Digital




China has historically been the favourite FDI destination among emerging markets

Representative image

New Delhi: The year 2018 has been very good for the Indian economy so far as foreign direct investment (FDI) is concerned. According to a report in Economic Times, for the first time in two decades, India got more foreign inflows in 2018 than China.

According to the business daily, stable fundamentals of the country, a bankruptcy code and new opportunities in sunrise sectors helped India attract $38 billion in FDI, higher than China's $32 billion this year.

It may be noted that China has historically been the favourite destination among emerging markets for global funds. But this year India saw 235 deals amounting to $37.7 billion, highest ever for the country, beating China, the ETreport said citing data from Dealogic, a global M&A and capital markets data provider. The trade war between China and the US is seen as a major reason for the FDI slowdown to China.

“India has had a busy M&A calendar in 2018 and we will continue to see good traction in inbound M&As,” the publication quoted Kalpana Morparia, chief executive for South and Southeast Asia at JP Morgan Chase & Co as saying. “Given India’s demographics, the e-commerce story, the way India has leapfrogged the several stages of technological revolution, we expect a lot of activity in the technology and financial services space going forward,” Morparia added.

Global investors typically focus on India despite short-term uncertainty over the political climate, be it state or federal elections, Sonjoy Chatterjee, chairman, Goldman Sachs in India told ET.

The biggest deal that drove FDI flows to India this year is Walmart's $16 billion buyout of Flipkart. Experts believe technology-driven consumer retail and financial services spaces are likely to see substantial M&A activity in the near future.

Other than ecommerce, asset divestment happening because of the new bankruptcy framework is also attracting foreign investors with deep pockets to deploy funds in the country, mainly in the manufacturing sector, the business daily said.

https://www.timesnownews.com/busine...ig-discounts-will-vanish-for-consumers/338148

nonsense. Article below was for just the first half of 2018.

"As U.S. firms pulled money out of their investments in the first half of the year, China became the top destination for FDI, with $70 billion of inflows, a 6 percent rise."

https://uk.reuters.com/article/us-g...018-after-trump-tax-reforms-u-n-idUKKCN1MP25B

 

[Han Patriot]

With $38 billion FDI in 2018, India pips China for the first time in 20 years
Business

Updated Dec 28, 2018 | 12:41 IST | ET Now Digital




China has historically been the favourite FDI destination among emerging markets

Representative image

New Delhi: The year 2018 has been very good for the Indian economy so far as foreign direct investment (FDI) is concerned. According to a report in Economic Times, for the first time in two decades, India got more foreign inflows in 2018 than China.

According to the business daily, stable fundamentals of the country, a bankruptcy code and new opportunities in sunrise sectors helped India attract $38 billion in FDI, higher than China's $32 billion this year.

It may be noted that China has historically been the favourite destination among emerging markets for global funds. But this year India saw 235 deals amounting to $37.7 billion, highest ever for the country, beating China, the ETreport said citing data from Dealogic, a global M&A and capital markets data provider. The trade war between China and the US is seen as a major reason for the FDI slowdown to China.

“India has had a busy M&A calendar in 2018 and we will continue to see good traction in inbound M&As,” the publication quoted Kalpana Morparia, chief executive for South and Southeast Asia at JP Morgan Chase & Co as saying. “Given India’s demographics, the e-commerce story, the way India has leapfrogged the several stages of technological revolution, we expect a lot of activity in the technology and financial services space going forward,” Morparia added.

Global investors typically focus on India despite short-term uncertainty over the political climate, be it state or federal elections, Sonjoy Chatterjee, chairman, Goldman Sachs in India told ET.

The biggest deal that drove FDI flows to India this year is Walmart's $16 billion buyout of Flipkart. Experts believe technology-driven consumer retail and financial services spaces are likely to see substantial M&A activity in the near future.

Other than ecommerce, asset divestment happening because of the new bankruptcy framework is also attracting foreign investors with deep pockets to deploy funds in the country, mainly in the manufacturing sector, the business daily said.

https://www.timesnownews.com/busine...ig-discounts-will-vanish-for-consumers/338148

favourite destination among emerging markets for global funds

So it's those speculative funds coming into India.

http://www.chinadaily.com.cn/a/201807/12/WS5b470ed7a310796df4df614b.html

China's FDI in H1 alone is 68bil$, that's in hardcore real 'investments' in factories, labs and businesses. Our system curbs foreign investment in spculative funds into our share markets due to security concerns, unlike in India where they are hungry for dollars$ to sustain their deficits.

 

[ziaulislam]

So it's those speculative funds coming into India.

http://www.chinadaily.com.cn/a/201807/12/WS5b470ed7a310796df4df614b.html

China's FDI in H1 alone is 68bil$, that's in hardcore real 'investments' in factories, labs and businesses. Our system curbs foreign investment in spculative funds into our share markets due to security concerns, unlike in India where they are hungry for dollars$ to sustain their deficits.

Its abnormal high because walmart acquired flipkart for 16b dollars effectively killing competition

 

[Shankranthi]

Its abnormal high because walmart acquired flipkart for 16b dollars effectively killing competition

Where do you think that 16 Billion $ will go ?

They will be invested back into India to fund new start up's and newer competition.

 

[Han Patriot]

Its abnormal high because walmart acquired flipkart for 16b dollars effectively killing competition

They are gonna monopolize the Indian market, killing off scores of mom and pop shops. In China we have superchains challenging Walmart and they are pretty much cornered, India is like the right goose for the slaughter as usual.

 

[kmc_chacko]

They are gonna monopolize the Indian market, killing off scores of mom and pop shops. In China we have superchains challenging Walmart and they are pretty much cornered, India is like the right goose for the slaughter as usual.

Everybody said same when METRO started in Bangalore. But, METRO created more jobs than critics bantered.

 

[HariPrasad]

They are gonna monopolize the Indian market, killing off scores of mom and pop shops. In China we have superchains challenging Walmart and they are pretty much cornered, India is like the right goose for the slaughter as usual.

And we saw your strong economy bend on its knees against the trump and your share market loosing more than one forth of value in just one year. Had you guys focused on economy rather than bragging, you could have checked the damage to your share market and rapidly loosing foreign currency reserve.

 

[Han Patriot]

And we saw your strong economy bend on its knees against the trump and your share market loosing more than one forth of value in just one year. Had you guys focused on economy rather than bragging, you could have checked the damage to your share market and rapidly loosing foreign currency reserve.

Well trump's policy does have effects on our economy but underestimating our economic resilience is a mistake. Btw, who is bragging, bragging is a quality uniquely attributed to Indians. Do you know how much the US stock excahnge lost? I suggest you go check it out, both sides will sustain damage in a trade war. But no worries, we have India as our 50 bil$ surplus cash cow.

Your economy is an economy that is dependent on oil prices, go figure.Btw, go check our latest forex reserve.

 

[GeraltofRivia]

China FDI in 2018 was already $115b from January to November 2018, wondering where Economical Times’ data comes from.

https://tradingeconomics.com/china/foreign-direct-investment

It was $168b in 2017.
https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=IN-CN

 

[Baby Leone]

lol at indians and their desperation....

 

[Han Patriot]

China FDI in 2018 was already $115b from January to November 2018, wondering where Economical Times’ data comes from.

https://tradingeconomics.com/china/foreign-direct-investment

It was $168b in 2017.
https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=IN-CN

Exactly my point, Indian FDI is mostly FII, funds coming in to play the stock markets and then sell off when the price is right, not much investment in infrastructure and manufacturing, etc.

 

[GeraltofRivia]

It appears that China lead the pack in investing India. Win win!!

Led by Chinese, nearly 600 companies line up $85 billion investments in India
By Ruchika Chitravanshi, ET Bureau | Oct 16, 2017, 07.38 AM IST

Most of the investment proposals are from China at 42%, followed by the US at 24% and the UK at 11%.

NEW DELHI: Sany Heavy Industry heads up a list of close to 600 companies planning to invest a total of about $85 billion in India in projects that will create an estimated 700,000 jobs in the country in next five years.

Invest India, the government’s foreign investment promotion agency, is planning to actively promote the country as an investment destination and has drawn up a list of 200 companies not present in India that it wants to target.

“We want to achieve a $100 billion target of foreign investment in the next two years — both greenfield and brownfield,” said Invest India managing director Deepak Bagla. India recorded its highest FDI (foreign direct investment) in FY17 at $43 billion, up 9 per cent over the previous year.

One of the world’s leading engineering machinery manufacturers, China’s Sany Heavy Industry plans an investment of $9.8 billion. Amazon, along with several other Chinese companies — Pacific Construction, China Fortune Land Development and Dalian Wanda — are each planning investments of more than $5 billion during this period.

Of the total indicated investment, $7.43 billion has already materialised and 100,000 jobs have been created, according to Invest India.

Rolls-Royce plans to invest $3.7 billion and Australia’s Perdaman Industries $3 billion.

Invest India is handholding the investors through the process, starting with identifying opportunities to scouting for locations and guiding them on policy.

Most of the investment proposals are from China at 42 per cent , followed by the US at 24 per cent and the UK at 11 per cent .

Energy and waste management have received the highest investment interest followed by construction and ecommerce.

The Invest India team recently met Prime Minister Narendra Modi to update him on the status of the big foreign investments coming into India. “In essence we are the voice of investor in the system and solely dedicated to FDI,” said Bagla.

“The idea is, as PM Modi said, to transform red tape into a red carpet for investors.” Commerce and industry minister Suresh Prabhu has said there is a need for a paradigm shift in the government’s approach to increase investments and it will reach out proactively to prospective investors.

The agency said it has received more than 100,000 investor queries from 114 countries in the past two years. Invest India says it can help companies meet the most stringent criteria.

A top Fortune 500 company stipulated 136 parameters while scouting for land to set up its facility in India recently.

“We researched for over 70 days, gathered data across the country and came up with options in four states meeting each of their criteria for them to choose from,” Bagla said.

https://m.economictimes.com/news/economy/finance/led-by-chinese-nearly-600-companies-line-up-85-billion-investments-in-india/amp_articleshow/61093929.cms

 

[rott]

They are gonna monopolize the Indian market, killing off scores of mom and pop shops. In China we have superchains challenging Walmart and they are pretty much cornered, India is like the right goose for the slaughter as usual.

I agree. That's why the western world encourages democracy in India in order to kill them softly.
Uber is doing great in India while Didi bought out Uber in China.
Amazon is doing great in India, but Alibaba is wiping the floor with Amazon in China.
Two such examples....