Bangalore Investment：Global News ｜ US media： Foreign -to -Indian direct investment has slowed for two consecutive years

[Release Unit] Reference Message Network

[Posted Date] April 18, 2024

Reference News Network reported on April 18. According to the US Voice -over Radio website reported on April 14, in the past week, due to the continuous sought after by domestic shareholders and the promotion of corporate financial report updates, India's benchmark stock index has repeatedly reached a record highThe momentum of development.But at the same time, foreign direct investment has not increased significantly as people expect.

It is reported that in fact, India's foreign direct investment has slowed for the second consecutive year. Although New Delhi is optimistic about the global supply chain transfer and has been striving for foreign investment.

Observer pointed out that it is interesting that competition between India and the United States has become more intense in terms of fighting for foreign investment.

The net foreign direct investment from India 2022-2023 was US $ 28 billion, a year-on-year decrease of 27%.The net foreign direct investment in 2023-2024 has also decreased significantly year-on-year.

"One of the main reasons for the slowdown in foreign direct investment in India is that global foreign direct investment generally slows down."Essence

"The uncertainty in the market supervision of India has continued to increase, coupled with the relatively small domestic market, these have made foreign investors not be able to wrap India. Exports may helpThe attractiveness of India as a procurement centerBangalore Investment. "

According to the data in the latest report of the Equity Company of the India, India's share in global foreign direct investment is only slightly higher than 2%, and it has fallen to the level before 2019.

"With the transfer of the supply chain, India is facing competition from emerging market countries that may have closer relations with the United States."reporter.Surat Wealth Management

Plazard pointed out: "The US market is so huge, and the United States is trying to attract manufacturing backNew Delhi Investment. So what else does the international company come to India to do it? This is where the challenge lies."

According to this latest report from Cartak's equity company, in the past five years, the United States has increased by 14 percentage points in global foreign direct investment.

An Indian economic analyst who did not want to disclose his name said that there are many reasons for foreign investment in India in recent years.She is mainly attributed to India's tedious administrative approval procedures, poor records in contract execution, and relatively low labor productivity of the manufacturing sector.

She also said that India should use a free trade agreement to attract foreign direct investment.

Experts said that India needs to diversify in import sources and enhance their participation in the global value chain.

The Ernst & Young Certified Public Accountants' trading economist in New Delhi Lahul Natguli said that India has not fully exerted its own potential in attracting long -term foreign capital.Improve the business environment, accelerate the signing of investment protection treaties with the main source of direct investment with foreign countries, and allowed rupees to gradually and steadily depreciate to stimulate exports. These practices can help India.

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