India closing gap with China in FDI inflows

Times of IndiaCOIMBATORE: FDI (foreign direct investment) inflows to India are picking up. FDI inflows rose from 1.7% of GDP (gross domestic product) in 2014 to 2.1% in 2015, narrowing the gap with China as a percentage of GDP.

FDI inflows accounted for 2.3% of GDP in 2015 for China. FDI inflows into India touched the highest ever mark of $51 billion between April 2015 and February 2016. However, China’s GDP is much bigger than India’s.

“These trends of rising inflows to India and moderating inflows to China began in 2013 and are likely driven by a mix of pull and push factors, such as divergent growth outlooks, ongoing FDI liberalisation/economic reforms in India and rising labour costs in China,” said Sonal Varma and Neha Saraf of Nomura India.

Times of India: India closing gap with China in FDI inflows

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