The non-resident Indians (NRIs) deposited around $1 billion in the country in April alone.
Showing their confidence in the resilient Indian economy despite global macroeconomic conditions, non-resident Indians (NRIs) deposited around $1 billion in the country in April alone.
Last year, overseas Indians deposited $150 million in the same month, showing their growing belief in the Indian economy as there is increasing evidence of a trend upshift taking shape, which is shifting India’s growth trajectory from the 2003-19 average of 7 per cent to the 2021-24 average of 8 per cent or even more.
According to latest data from the Reserve Bank of India (RBI), the surge in NRI deposits reflects the resilience of the Indian economy.
For the NRIs, There are three key deposit schemes in the country – the foreign currency non-resident (bank) or FCNR(B); the non-resident external rupee account or NRE(RA) and the non-resident ordinary (NRO) deposit scheme.
In April, NRIs deposited $583 million in the NRE(RA) scheme, followed by $483 million in the FCNR(B) scheme.
During the pandemic, NRI deposits grew to $142 billion from $131 billion.
India’s forex kitty surges to new lifetime high of $655.8 billion
Meanwhile, India’s foreign exchange reserves surged by $4.3 billion to scale a lifetime high of $655.8 billion, according to the latest RBI data.
India, with an expected 15.2 per cent share in world remittances in 2024, also continues to be the largest recipient of remittances globally.
An increase in the foreign exchange reserves reflects strong fundamentals of the economy and gives the RBI more headroom to stabilise the rupee when it turns volatile.
It’s high time for African Countries to guard against adverse terms and conditions of Chinese assisted projects. There is no doubt that with growing Chinese FDI in African countries, the latter were prompted to enhance partnership with the former for a win-win benefit to both the sides. In spite of the fact that China’s investment in Africa significantly promotes the host country’s economic growth and development, it inevitably destroys the local environment to different degrees depending on the quality of political, legal and administrative set-ups in the recipient countries … writes Dr Sakariya Kareem
Notwithstanding Chinese investment in Africa sparking economic growth and some positive social outcomes across the continent, a 2021 research paper from the United Nations University revealed that regions hosting Chinese projects are more likely to experience protest. China’s financial involvement in the continent has grown dramatically since the launch of the Forum on China-Africa Cooperation (FOCAC) in 2000 and the China-Africa Development Fund in 2006. Today, China is Africa’s largest trading partner and it has spent an estimated USD 350 billion on development programmes in the continent between 2000 and 2014.
African countries are resource-rich but capital deficient. They seek Chinese investment for exploiting their natural resources and developing their railroad networks to connect various ports and cities for trade and commerce.
But given their weak institutional framework and corruption of self-seeking and vulnerable politicians, Chinese investment often ends up in the hands of a select few among the ruling elites while people do not benefit as much.
Such anomalies often propel people into protest. There are various instances of protests in the past against Chinese-assisted projects in Africa and some of them have been cancelled due to protracted controversies. Recently, Tanzania cancelled its deal with China for the construction of the Bagamoyo Port project on the pretext of skewed Chinese terms and conditions and irreconcilable differences after nine years of negotiation. The agreement had been signed in 2013.
Another such episode of skewed Chinese terms and conditions came to light in Kenya in 2022 with regard to China assisted 473 km Standard Gauge Railway (SGR) project connecting the port city of Mombasa with Nairobi. The project agreed by the previous government is now being put to scrutiny for highly skewed terms and conditions in favour of China including giving priority to China in related purchases, giving mandatory favourable customs clearing facility to China and provision for creating a Railway Development Fund for repayment of Chinese loans by dedicating 42.06% of SGR proceeds.
In the case of Tanzania’s Bagamoyo port project, the skewed Chinese terms and conditions included taking over the port on a 99-year lease with complete monopoly on construction and operation and exclusive rights for transportation of copper from Zambia, by TAZARA to Bagamoyo port for further transportation to China. The terms also included complete control over the logistic facility.
In fact, this is not a new phenomenon. The Chinese investment in many other African countries also came under scanner in the past for being opaque and skewed besides being exploitative of indigenous workers and causing social and environmental dislocations. People’s protest in such cases is frequent.
In the Kenyan archipelago of Lamu, for instance, residents and local businesses recently managed to block a proposed Chinese coal power plant on the pretext that the project might affect the local tourist industry. People in Gambia have protested against Chinese fish factories, which have drained waste into nearby wildlife reserves, hurting the local fish industry and the environment. In 2012, Zambian workers protested against low pay and hazardous working conditions in Chinese-run mines and even killed a Chinese manager.
All this happens because of opaque and skewed terms and conditions giving Chinese investors more control on the implementation and operation of the projects and lack of accountability due to corruption, poor governance and weak institutions which China influences through underhand deals. Another research from the UN University has concluded that compared to World Bank aid, Chinese finance is prone to be used by local elites to pursue their own interests and obtain many of the benefits mainly because of a lack of transparency in loan conditions and China’s indifference in the domestic affairs of the host countries. The projects are allocated to Chinese investors often without proper impact assessments. The local people also do not have confidence in their governments and institutions suspecting involvement in corruption and underhand deals, so they resort to protest to safeguard their labour and human rights demanding accountability from their respective governments.
There is no doubt that with growing Chinese FDI in African countries, the latter was prompted to enhance its partnership with the former for a win-win benefit to both sides. In spite of the fact that China’s investment in Africa significantly promotes the host country’s economic growth and development, it inevitably destroys the local environment to different degrees depending on the quality of political, legal and administrative set-ups in the recipient countries. It is now well-documented how China’s significant investment in Africa’s mining industry accelerates the rapid consumption of non-renewable resources eventually causing a series of environmental problems.
Some large hydropower projects funded by China rarely consider the negative impact on the local environment and society. Instead of improving the local power supply, they do significant damage to the local agricultural production environment. All these side-effects of the Chinese FDI adversely affect the livelihood and habitats of African people.
In 2013, more than 1 million cubic meters of timber from Mozambique were brought into China through illegal channels and this continued later on a larger scale from other countries. Fishing in West African waters has also been affected by overfishing by Chinese companies. In the case of Sudan, the construction of the Malloway dam has led to clashes between local governments and residents. The majority of Chinese enterprises ignore international environmental and social standards while constructing roads, bridges, railways and dams and this is why they have led to environmental destruction, air and water pollution and extinction of rare species.
All the failings on the side of Chinese investors do not mean that African countries should close their doors to them, but they need to avert becoming victims of the skewed terms and conditions of the Chinese companies. The governments of these countries need to be cautious about the over-exploitation of their natural and human resources by Chinese companies which at best brings asymmetric benefits and leads to the violation of the rights of the local people.
According to the report’s data, the UAE ranked first among recipient countries with around 923 projects. ..reports Asian Lite News
The Arab Investment and Export Credit Guarantee Corporation (DHAMAN) announced a rise of 74 percent in the number of foreign direct investment (FDI) projects entering Arab countries in 2022, totalling 1,617 projects with a rise in investment cost of 358 percent, reaching US$200 billion.
According to the report’s data, the UAE ranked first among recipient countries with around 923 projects. In terms of sectors, renewable energy ranked first in terms of investment cost, with a share of 60 percent while the software sector led in terms of the number of projects, accounting for 23.4 percent of the total.
According to the 38th Annual Investment Climate Report for Arab Countries in 2023, organised by DHAMAN from its headquarters in Kuwait, these FDI projects are mainly concentrated in Egypt, accounting for 53 percent of total investment cost, and in the UAE, accounting for 57 percent.
The cumulative value of these projects in the region over the past 20 years totalled $1.5 trillion, comprising over 16,000 projects that have created more than two million jobs, the report added.
In the report’s opening remarks, Abdullah Ahmed Al Sabah, Director-General of DHAMAN, said that the corporation monitored 155 composite and subsidiary indicators issued by more than 30 international organisations, which revealed changes to the global rankings of Arab countries across four main indicator groups that are relevant to the investment climate in the region in 2022, which are political, economic, regulatory and production.
The overall changes to the international indicators for Arab countries have had a positive impact on several FDI projects entering the region and their investment costs, he added.
The strong performance will continue in 2023, especially after a 28 percent increase in the number of foreign projects entering the region, and a 70 percent rise in investment costs, reaching $74 billion in the first quarter of 2023 compared to the same period in 2022, which are due to improvements in the political and economic conditions in the region and subsiding geopolitical issues both regionally and globally, he further added.
Dubai has surpassed major global cities to attract a record-breaking 451 projects in the cultural and creative industries, representing an impressive increase of 107.7 percent…reports Asian Lite News
Dubai has achieved top global ranking in attracting Foreign Direct Investment (FDI) projects in the cultural and creative industries in 2022, further reinforcing the emirate’s leadership and growing competitiveness as the global capital of the creative economy, revealed H.H. Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, Chairperson of Dubai Culture and Arts Authority and Member of the Dubai Council.
According to the Dubai FDI Monitor report, compiled by Dubai’s Department of Economy and Tourism (DET) and based on data from the Financial Times’ ‘fDi Markets,’ the world’s leading data source on Greenfield FDI projects, Dubai attracted a record-breaking 451 projects in the cultural and creative industries. This represents an impressive increase of 107.7 percent, surpassing major global cities such as London, Singapore, Paris, and Berlin.
Dubai’s leading position in the global index underscores its commitment to fostering a dynamic creative ecosystem and cements its position as a hub for exceptional creative talent, a breeding ground for innovation and a preferred destination for investment.
His Highness Sheikh Mohammed bin Rashid Al Maktoum had envisioned to position the city as a global centre for culture, an incubator for creativity and a thriving hub for talent.
Sheikha Latifa, said the latest ranking embodies the emirate’s unique approach and reflects the strength and maturity of its infrastructure and its legal, legislative, creative and digital environment.
“These notable accomplishments exemplify the remarkable strides made by Dubai’s cultural and creative industries and highlight the strength of its economic ecosystem. The emirate attracts innovators and talented individuals worldwide, providing them with an enabling environment where innovative projects can flourish, ground-breaking ideas can be nurtured and ambitious concepts can be transformed into thriving economic ventures.”
Dubai achieves this by leveraging its unique cultural diversity and renowned status as a premier destination for living, working, and investing, she said.
“Moreover, Dubai is committed to establishing a sustainable development landscape that transcends the present and future, ultimately positioning itself as the global capital of the creative economy by 2026,” she stressed.
Dubai’s total FDI capital flows in the cultural and creative industries surged to AED7.357 billion in 2022, ranking the city 1st in the MENA region and 12th globally (up from 14th in 2021). This FDI generated an estimated 12,368 jobs, positioning Dubai 1st in the MENA region and 6th globally (maintaining the same level as 2021) in job creation in FDI.
The United States, India, the United Kingdom, France and Switzerland emerged as the leading foreign direct investors in Dubai’s cultural and creative industries in terms of FDI projects, while the US, India, Switzerland, France and UK topped the list in terms of FDI capital inflows. This aligns with Dubai’s strategic focus on these markets as key partners through targeted engagements.
In 2022, Dubai Culture participated in global missions to cities within the UK and the US to showcase Dubai’s unique creative landscape and establish collaborations with creative entrepreneurs and organisations.
According to ‘Dubai FDI Monitor’ data, Greenfield (wholly-owned) FDI projects accounted for 76 percent of the total in Dubai’s cultural and creative industries in 2022, followed by New Forms of Investments (NFIs), which accounted for 13 percent, Mergers & Acquisitions and Reinvestment projects making up 5 percent each, and Greenfield (joint-ventures) at 1 percent.
Over the past few years, the top sub-sectors in Dubai’s creative industries have displayed dynamic trends. Non-video game software publishers and custom computer programming services have gained prominence, with the latter experiencing a significant increase in its share of FDI capital in 2022.
Architectural, engineering, and related services have consistently grown, highlighting Dubai’s emphasis on developing a sustainable built environment. Data processing, hosting, and related services experienced a surge these last two years, reflecting the city’s commitment to digital transformation.
The jewellery, luggage, and leather goods stores sub-sector has maintained a steady presence, showcasing Dubai’s position as a luxury retail destination. Meanwhile, the motion picture and sound recording industries have begun to gain traction, indicating the city’s expanding role there. These trajectories exemplify Dubai’s adaptability and resilience in nurturing all of these creative industries.
Asian nations, like India and Singapore, are finding their fastest-growing creative industry sectors to be enormous revitalisers of employment figures, allowing them to project nine-digit exports within the coming years.
In a record first-half achievement, Dubai attracted 492 FDI projects during the first six months of 2022, an 80.2 percent increase compared to the same period in 2021…reports Asian Lite News
Dubai consolidated its status as the world’s leading foreign direct investment (FDI) hub, retaining its first rank globally for attracting FDI projects during H1 2022.
In a record first-half achievement for the emirate, Dubai attracted 492 FDI projects during the first six months of 2022, an 80.2 percent increase compared to the same period in 2021, according to data published by Dubai’s Department of Economy and Tourism (DET).
Dubai also ranked first globally in attracting greenfield FDI projects during the same period this year, according to the Financial Times Ltd’s “FDi Markets”, the most comprehensive online database on cross-border greenfield investments.
Greenfield projects accounted for a 56 percent share of Dubai’s FDI projects during the period, according to the Dubai Investment Development Agency (Dubai FDI), a DET entity, using data from its Dubai FDI Monitor. Dubai witnessed FDI inflows of AED13.72 billion in H1 2022, reflecting a growth of 14.6 percent compared to the same period last year.
Meanwhile, FDI investments and projects generated 15,164 new jobs in H1 2022, a 33.5 percent year-on-year growth compared to H1 2021. Dubai retained its top rank in FDI-related employment among countries in the Middle East and North Africa (MENA).
Underlining its focus on retaining investments and investor confidence, Dubai ranked fourth globally in reinvestment FDI projects, 10th globally in reinvestment FDI capital inflows, and eighth in terms of jobs created by reinvestment projects.
Dubai ranked first globally in attracting greenfield FDI projects in 2021, with 418 greenfield FDI projects, and the latest numbers vindicate its business-friendly initiatives and policies. Investor confidence in the emirate remains high, reflecting its economic stability and bright growth prospects.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, conveyed his satisfaction at the new global and regional FDI milestones.
“We remain committed to enriching Dubai’s enabling business environment to explore fresh growth avenues with our partner investors to achieve even greater success in years to come. Further diversifying the economy, attracting more investment in future-focused sectors, and enhancing growth opportunities in the digital economy, will remain our strategic objectives for Dubai’s development journey,” he added.
The growth in FDI inflows places Dubai in an advanced global position across key metrics. Dubai attracted FDI projects and capital of all kinds, including greenfield projects, reinvestments, mergers and acquisition projects, and new investment forms.
While 56 percent of the FDI projects that came into Dubai in H1 2022 were greenfield projects, 29 percent belonged to the category of new forms of investment, 6 percent were venture capital-backed FDI projects, 5 percent were mergers and acquisition (M&A) projects, 3 percent were reinvestment, and 1 percent, joint ventures.
Data from the “Dubai FDI Monitor” also showed that medium and high-tech projects accounted for 62 percent of the total FDI projects in the first half of 2022, while 38 percent were low-tech investment projects. The emphasis on technology indicates Dubai’s success in attracting global talent and capital into its transition as a digital economy.
Recently, the “Dubai FDI Monitor” received a special mention from the United Nations Economic and Social Council for Asia and the Pacific (UNESCAP) as the best global practice in tracking and monitoring investments.
The United Kingdom (36 percent), the United States (20 percent), France (10 percent), Singapore (5 percent), and Switzerland (4 percent) were the top source countries for FDI capital in Dubai during the first half of 2022. In terms of FDI projects, the top five source markets were the US (18 percent), the UK (15 percent), India (13 percent), and Singapore and France (4 percent each).
The five most prominent sectors in terms of FDI capital inflows to Dubai in the first half of 2022 were Speciality Trade Contractors (28 percent), the Non-Residential Building Construction sector (12 percent), Accommodation and Food Services (12 percent), Data Processing, Hosting and Related Services (6 percent), and Electric Power Generation (4 percent).
The Wholesale and Retail Trade sector and the Accommodation and Food Services sector topped the list with 11 percent each in terms of the number of FDI projects, followed by the Computer Systems Design and Related Services sectors, Software Publishing, and Administrative and Support Services, with 7 percent each.
The ranking testifies to Dubai’s success in achieving global leadership in many sub-sectors of FDI. The emirate ranked first in the world in terms of the number of projects in the Creative Industry and the number of FDI projects in Business Services, Financial Services, Transportation and Warehousing, Industrial Equipment, and Sales, Marketing and Support sectors.
FDI inflows to Asia grew by 4% to $535 billion in 2020, making it the only region to record growth and increasing Asia’s share of global inflows to 54%, reports Asian Lite News
Foreign Direct Investment (FDI) to India in 2020 increased by 27 percent to $64 billion, pushed up by acquisitions in the Information and Communication Technology (ICT) industry, making it the 5th largest recipient in the world, says UN’s World Investment Report 2021.
Prepared by the UN Conference on Trade and Development (UNCTAD), the ‘World Investment Report 2021 – Investing in Sustainable Recovery’ said global FDI flows have been severely hit by the pandemic and they plunged by 35 per cent in 2020 to $1 trillion from $1.5 trillion the previous year.
It said, lockdowns caused by Covid-19 around the world slowed down existing investment projects, and prospects of a recession led multinational enterprises (MNEs) to reassess new projects.
FDI to India increased 27 per cent to $64 billion in 2020 from $51 billion in 2019, pushed up by acquisitions in the ICT industry, making the country the fifth largest FDI recipient in the world, the UNCTAD report mentioned.
Amid India’s struggle to contain the Covid-19 outbreak, robust investment through acquisitions in ICT (software and hardware) and construction bolstered FDI, it added.
Cross-border Mergers and Acquisitions surged 83 per cent to $27 billion, with major deals involving ICT, health, infrastructure and energy, the UN report said.
Large transactions included the acquisition of Jio Platforms by Jaadhu (a subsidiary of Facebook) for $5.7 billion, the acquisition of Tower Infrastructure Trust by Brookfield (Canada) and GIC (Singapore) for $3.7 billion and the sale of the electrical and automation division of Larsen & Toubro India for $2.1 billion, it noted.
Another megadeal — Unilever India’s merger with GlaxoSmithKline Consumer Healthcare India (a subsidiary of GSK United Kingdom) for $4.6 billion — also contributed to the increase in FDI in India, said the World Investment Report 2021, the report stated.
Major project announcements in the ICT industry included a $2.8 billion investment by online retail giant Amazon in ICT infrastructure in India, it mentioned.
The report said FDI in South Asia rose by 20 per cent to $71 billion, driven mainly by strong Mergers and Acquisitions in India.
FDI outflows from South Asia fell 12 per cent to $12 billion, driven by a drop in investment from India, it highlighted.
India ranked 18 out of the world’s top 20 economies for FDI outflows, with 12 billion dollars of outflows recorded from the country in 2020 as compared to 13 billion dollars in 2019, said the report.
According to it, FDI inflows to developing Asia grew by 4 per cent to $535 billion in 2020, making it the only region to record growth and increasing Asia’s share of global inflows to 54 per cent.
In China, FDI increased by 6 per cent to $149 billion, the UNCTAD Investment Report added. While some of the largest economies in developing Asia such as China and India recorded FDI growth in 2020, the rest recorded a contraction, it said.
As New Delhi now shifts its focus on embarking on an aggressive vaccination to contain a possible third Covid 19 wave, economy watchers said that India is set to become the favourite alternative investment destination to China, reports Mahua Venkatesh
The 21st century is India’s century, Deloitte’s global CEO Punit Renjen said in April just before the severe second Covid 19 wave that hit the country.
Did his opinion change after the harsh second wave? Apparently not.
In a recent interview to CNBC, Renjen said that tackling Covid is the only way to get back to growth path.
“On the longer term, I believe that this could be India’s century, India has all the ingredients�talent to demographics to consumer base,” Renjen said adding that despite the severe Covid 19 second wave, India was still capable of posting a double-digit growth for the current financial year.
As New Delhi now shifts its focus on embarking on an aggressive vaccination drive � the aim is to vaccinate one crore people daily by July-August and carving out a stringent mechanism to contain a possible third Covid 19 wave, economy watchers said that India is set to become the favourite alternative investment destination to China.
“We need to have a single-minded focus on the vaccination drive across the country. Only when people are vaccinated, can we be fully prepared to deal with the infection and a possible third wave,” D.K. Srivastava, chief policy adviser, EY India said.
Another analyst said that it is important to vaccinate people in the rural areas on priority basis as their access to healthcare is limited.
A report by EY India also said that while there has been some damage to economic growth in the first quarter due to the second wave, the overall impact could be contained by the pace of vaccination.
“Global investors are betting that the worst of India’s catastrophic second coronavirus wave has passed, helping to push the country’s stocks to record highs,” the Financial Times said. It also added that though India’s second wave overwhelmed health systems and caused acute shortages of oxygen and drugs and hit the economy, infections are now falling in much of the country, including in the capital New Delhi and financial hub Mumbai.
Healthcare interlinked with economy
With the rapidly changing geo-economic contours, several companies have quietly started de-risking and de-coupling their supply sources but to ensure that India does not lose out on this opportunity, the thrust on vaccination, overall healthcare and its deliverables will only increase in the coming months.
“By mid-July or August, we will have enough doses to vaccinate 1 crore people per day. We are confident of vaccinating the whole population by December,” ICMR chief Balram Bhargava said at a press briefing.
Sources added that the country is also leaving no stones unturned this time in preparation to combat another Coronavirus wave to ensure that the economy is no more dented.
“We are now focusing on vaccinations and overall healthcare facilities. From ease of doing business, it is now ease of healthcare accessibility,” one of them said. While vaccination is one of the main ways that could blunt the severity of the third wave, states and district level authorities have also been asked to start taking the necessary steps to be prepared with Covid related medical care, which includes oxygen cylinders and critical antibiotics.
Investors are closely watching India’s moves and the measures being taken to deal with the infection.
The rapidly changing global geo-politics has in turn changed the geo-economic landscape pushing investors to look at India.
The rising tension between China and several other countries including the US, Australia and European Union is also playing its part. “Countries like Vietnam did emerge as an alternative investment destination to China but they have the geographical limitation of size�in terms of geography as well as labour and market,” a senior executive engaged with a multinational company said.
Sources said that notwithstanding the severe second wave of Coronavirus, several foreign investors are in “advanced” talks with Indian authorities. In fact, a group of South Korean investors even paid a visit to Sikkim just two months ago to explore opportunities in sectors such as pharmaceutical, energy, organic farming, food processing, and tourism. “Korean companies tend to be bold and try to be pre-emptive, so Sikkim can be one of the favourable destinations considering its various potentials,” Moon Young Kim, Managing Director, KOTRA South Asia Region said.
A recent Hindustan Times report said that when external affairs minister S Jaishankar met US corporate icons on May 27, many showed keen interest to invest in India, overriding immediate concerns related to the pandemic.
The production-linked incentive (PLI) scheme, put in place last year, has also driven investors.
Meanwhile, the country’s total foreign direct investment (FDI) in 2020-21 stood at a record $81.72 billion compared to 2019-20.
(This content is being carried under an arrangement with indianarrative.com)
During the last financial year, India attracted $5.64 billion in FDI from Mauritius…reports Asian Lite News
The US replaced Mauritius as the second-largest source of foreign direct investment (FDI) into India during 2020-21 with inflows of $13.82 billion, according to government data. Singapore remained the top source of foreign direct investment into the country for the third consecutive fiscal at $17.41 billion.
During the last financial year, India attracted $5.64 billion in FDI from Mauritius, according to the data by the Department for Promotion of Industry and Internal Trade (DPIIT). The island country was followed by UAE ($4.2 billion), Cayman Island ($2.79 billion), Netherlands ($2.78 billion), UK ($2.04 billion), Japan ($1.95 billion), Germany ($667 million), and Cyprus ($386 million).
Overall foreign direct investments into the country grew 19 percent to $59.64 billion during 2020-21 amid measures taken by the government for policy reforms, investment facilitation and ease of doing business. Total FDI, including equity, re-invested earnings and capital, rose 10 percent to the highest-ever $81.72 billion, as against $74.39 billion in 2019-20.
In 2020-21, the computer software and hardware sector attracted the highest inflows of $26.14 billion. It was followed by construction – infrastructure activities ($7.87 billion) and services sector ($5 billion). Commenting on the data, Mithun V Thanks, Partner – M&A, Private Equity and General Corporate at Shardul Amarchand Mangaldas & Co, said tax reasons aside, US-based entities have historically been bullish on the India story.
“This is expected to continue in the next few years, with the pandemic driven focus on increased tech adaptation and integration. Silicon Valley will continue to weave many a-billion-dollar sized dreams, at the sheer size of the Indian market – and added to the cash crunch at the domestic level – should present agreeable valuations,” he said.
He added that with the increased cash being introduced in the US economy, it is likely that a chunk of this will flow into India as well. “The prevailing polity of anti-China sentiments in India (and in the US) is likely to provide the continuing last-mile impetus,” he said.
Pakistan’s economy is in bad shape is no more a revelation, as its project performance dropped to just 58 per cent in the duration of 2018-20,according to the reports…Reports Asian Lite News
Despite its claims over providing ease of doing business, the ruling Imran Khan-led PTI government has failed to lure foreign investors to the country, according to a recent media report.
In an article dated Sunday, the editorial board of The Express Tribune wrote that according to the latest data, foreign direct investment (FDI) has plummeted to USD 1.395 billion during the July-March period of the ongoing fiscal year as compared to USD 2.15 billion in the same period of last fiscal. This shows a 35.1 per cent fall in foreign investment flows.
“So while the impact of the raging pandemic is there, it’s also a fact that Pakistan has never been a go-to destination for foreign investors. There are a variety of reasons for that including lack of political stability and security in the country as well as unfavourable business climate marked by absence of tax incentives, high power and gas tariffs, low growth potential, dilapidated transport infrastructure,” the Sunday editorial read.
“No wonder, the volume of foreign direct investment in Pakistan has been abysmally low,” it added.
Besides, investment flows from China for CPEC-related projects constitute much of the total. During the period under study i.e. the first three quarters of the ongoing fiscal year, inflows from China stand at $859.3 million which is equal to 46 per cent of total foreign investment, the editorial pointed out.
“However, what must be a cause for concern for the government is that these inflows have also decreased – to $650.8 or by 24 per cent – year on year,” the editorial from The Express Tribune read.
According to a report last week, Pakistan’s economy is in bad shape is no more a revelation, as its project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19 due to poor performance in the Public Sector Management (PSM) and water sectors.
An editorial published in The News International published on Wednesday read: “Pakistan’s economy is in bad shape is no more a revelation, but the Independent Evaluation Department (IED)’s report of the Asian Development Bank (ADB) is revealing in its contents. In its latest report, the ADB has disclosed that Pakistan’s project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19.”
Moreover, the 35 per cent year-on-year decline in Foreign Direct Investment (FDI) in the first three-quarters of the outgoing fiscal is a surprise only to those who haven’t been paying attention to investment patterns in the country.
An editorial in Daily Times published on Wednesday pointed out, “The 35 per cent year-on-year decline in FDI in the first three-quarters of the outgoing fiscal is a surprise only to those who haven’t been paying attention to investment patterns in the country.” (ANI)
