India is one of the leading drivers of foreign direct investment (FDI) in the Asia-Pacific region. Relaxation of several FDI norms and grant of 100% FDI by the government of India. As of April-December 2018, the total FDI in India was valued at USD 33.5 billion.
Pune, India -- (SBWIRE) -- 05/06/2019 -- India is one of the leading drivers of foreign direct investment (FDI) in the Asia-Pacific region. Relaxation of several FDI norms and grant of 100% FDI by the government of India. As of April-December 2018, the total FDI in India was valued at USD 33.5 billion. With more firms around the world looking to enter the Indian markets, the FDI in India is expected to surpass the value that was attained by the end of 2018. Favorable government policies, and developing infrastructure for business is likely to attract more FDI by 2023 in India. According to recent study by Infinium Global Research and Consulting Solutions, the total FDI in India is projected to surpass USD 85 billion by the end of 2024.
Global Trend for FDI
As compared to the global FDI flow in 2016, the global foreign direct investment flow reduced by 23% in 2017. In 2016, the global foreign direct investment was around USD 1.87 trillion, whereas in 2017 it reduced to USD 1.43 billion. However, the reduction in the FDI inflow was the complete opposite to the other macroeconomic reforms such as GDP and trade growth in 2017.
The 22% reduction in the net foreign mergers and acquisitions globally in 2017, and 14% decline in the greenfield investment in the same year around the world made the matter worse in 2017 for global foreign direct investment. The reduction in the global foreign direct investment in 2017, impacted developed countries severely while developing countries remain intact in term of inflow of FDI in their own countries. Therefore, the developing countries received 47% of the total global foreign direct investment in 2017, as compared to 36% of the global FDI in 2016.
Emerging Countries - The Prime Market for FDIs
The FDI flows to the developing the Asia-Pacific region in 2017, was the same as it received in 2016. It was approximately USD 476 billion in 2017. China was the main leading country in Asia-Pacific, received a large amount of FDI in the high-tech sector. Other countries who received a significant amount of global FDI in 2017, in this region were Hong Kong (China), India, and Singapore among others. This region received around 33% of total global foreign direct investment in 2017 as compared to 25% of global FDI in 2016. The government pro-FDI investment attitude, open economy and political stability attracted the large amount of FDI in 2017. Moreover, the FDI flows to Latin America and the Caribbean countries went up significantly by 8% in 2017. In 2016, the total global FDI flow in this region was around USD 139 billion, which reached up to USD 151 billion in 2017. Argentina and Brazil received a large chunk of the global foreign direct investment flow in the Latin America region.
The global foreign direct investment flow to North America and European countries was diminished by 37% in 2017. In 2016, the global FDI in this region was around USD 1130 billion but is suddenly went down to USD 712 billion in 2017. Two major reasons for the decline in FDI in these regions were costly merger and acquisition and new tax reforms. North America experienced a significant drop in FDI due to tax inversions.
The FDI flow to the Commonwealth of Independent States (CIS) was reduced by 27% in 2017, as compared to the 2016 level. The political uncertainty in these states and geopolitical concern were the major factors for low FDI in this region. Additionally, the sluggish FDI in the Russian Federation, Azerbaijan, Kazakhstan, and Ukraine plummeted the overall FDI in this region in 2017.
About Infinium Global Research FDI Solutions
Infinium Global Research is extensively engaged in syndicated research and consulting service for its clients, primarily fortune 500 companies operating in Agriculture, Food & Beverages, Automotive, Aerospace & Defense, Energy, Infrastructure & Mining, Consumer Goods & Packaging, Healthcare & Medical Devices, and Chemicals & Materials sectors. Additionally, these sectors are the major recipient of the global FDI in the emerging market around the world, where every company wants to reach. The IGR is delivering its rich experience of these market to the top MNCs clients through a syndicate and consult services to better exploit the emerging opportunities in the emerging market.
Our FDI experts help our clients chose from the right markets in the world. Our exclusive services for FDI in India help clients across the world enter the Indian market. We have a team of experts led by A N Gawade, that has helped several companies enter the Indian market and have successfully set up their business in India.
To Know More about our FDI Solutions Visit: https://www.infiniumglobalresearch.com/fdi-solutions
Anand N Gawade Profile – Chartered Accountant
- CA Anand N Gawade is a Fellow Member of The Institute of Chartered Accountants of India. Since 2002, he has advised many Companies for setting up businesses in India, regulations, structuring, valuation of business, shares, securities, structuring, mergers, amalgamations, tax, outsourcing, etc.
- He is also an IBBI Registered Valuer, Arbitrator, International Tax Adviser, and Fraud Investigator and Forensic Auditor. He actively practices in Audits, International Tax & Transfer Pricing, Corporate Advisory Services.
- In the past, he has advised many Indian and Foreign Companies to enter Indian Markets, Strategies. He has carried out many International Valuation Assignments.
To Know More about CA Anand N Gawade Contact Us: https://bit.ly/2H0EN4F
Shrikant Athavale Profile- MBA
- Have been working in the market research industry for over 7 years.
- A highly respected professional in the market research industry across various industry verticals
- Proven track record of setting up business strategies to enter new product lines, new markets and brand positioning
- Developed a growth matrix to help understand the client about the most lucrative product segments and regional markets.
- Have delivered reports on setting up a private label brand for the leading retailers based in the U.S. and Europe.
- Have delivered over 150 high quality and insightful market research reports to devise business strategies for the clients in fortune 500 companies.
- Looking to venture into mergers and acquisitions, foreign direct investments, and joint ventures worldwide and establish brand Shrikant Athavale
- Strong network worldwide within fortune 500 companies.
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Ajit Kumar Rowniyar Profile - M.Phil. (Finance) from Noorul Islam Centre For Higher Education (Tamil Nadu) and Post Graduate Diploma in Management from Indian Institute of Plantation Management-Bengaluru, India, is actively engaged in the research sector.
- Have been working in the market research industry for over 4 years and assisting Shrikant Athavale in market research and preparation of strategic reports
- Handling the team of analysts working in the arena of market research
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