SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 02 Apr, 2024  

Us.china.9.thmb.jpg ‘US has benefited from a sharp decline in the share of FDI inflows into China’

Us.China.9.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
IANS | 02 Apr, 2024
The US and a select set of developed markets and emerging markets seem to have benefited from a sharp decline in the share of FDI inflows into China, Kotak Institutional Equities said.

China has lost 9.30 pps in the share of global FDI over CY2019-23, while the US has gained 14.3 pps over the same period.

Other major countries witnessing an increasing share of FDI inflows are Brazil, Canada, Japan, Korea, Mexico and Poland.

The US has seen a massive increase in FDI in the manufacturing sector in recent years, driven by diversification (near-shoring and on-shoring) in supply chains, geopolitical tensions between the US and China, large incentives for investment under the Inflation Reduction Act and CHIPS Act and large investments in AI, Kotak Institutional Equities said.

The recent weakness in gross FDI inflows to India is also symptomatic of a slowdown in global capital flows since CY2021, the brokerage said.

Increasing geopolitical tensions between a US-led ‘economic’ bloc and China, government-funded industrial policies for strategic sectors and tightening global central bank liquidity were the key contributors to the recent weakness in capital flows. Electricity, electronics and IT & communication continue to attract strong investment interest globally, although investments seem to be trailing announcements in recent years, it added.

India has taken significant positive steps in the past five years through various reforms and incentive measures but it is yet to see a meaningful increase in investments over this period. “Nonetheless, we remain hopeful that investments in certain sunrise sectors will accelerate in the coming years. In our view, it is important for India to focus on the domestic market while increasing its presence in higher value-added goods for exports,” the brokerage said.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter