India Emerged As The Largest Source Of Foreign Direct Investment

Among the BRIC (Brazil, Russia, India, China) countries, India emerged as the largest source of foreign direct investment for the European Union in 2007, thanks to high value takeover deals like Tata-Corus. From a mere 500 million euruos in 2006, India''s FDI to EU leapfrogged to 9.5 billion euros in 2007, way ahead of inflows from China (500 million euros), Russia (1.0 billion euros) and Brazil (1.9 billion euros), according to Eurostat data. In fact, FDI from China and Russia to the 27-nation EU declined from 2.2 billion euros and 1.5 billion euros. Besides India emerging as an important source of FDI for EU firms, it also saw big rise as a destination for European investment, much more than China and Brazil. While the EU outflows to India were 10.9 billion euros, they were only 1.8 billion euros to China and 7.1 billion euros to Brazil. However, FDI outflows to Russia were higher at 17.1 billion euros.