Unctad Bullish About India''s FDI

New Delhi: Growth in market looking foreign direct investment (FDI) to the Asian region should keep pace with rapid economic growth in the next few years, underpinned by the strong performance of China and India, the UN Conference on Trade and Development (Unctad) said. The Geneva-based UN outfit is also gung-ho about efficiency-seeking FDI owing to the plans of several countries such as China, India, Indonesia and Vietnam to develop their infrastructure. It also notes that even as India has shown huge potential for market-seeking FDI, it faces a number of disadvantages that could impede progress in attaining its goal of raising annual FDI to $50 billion by 2010. Aggressive acquisitions have placed some of the Chinese and Indian companies onto a fast track of internationalisation, even as the experience of some Chinese companies highlights the risks inherent in this approach towards global expansion.