Countries that are making it big with FDI in India
In 2019, India received $51billion of foreign investment, becoming the 9th largest recipient of Foreign Direct investments (FDI) l. According to The World Investment Report 2020 by the United Nations Conference on Trade and Development UNCTAD, there was an increase from the 42 billion dollars of FDI received in 2018 when India ranked 12 among the top 20 host economies in the world.
Let’s have a look at the countries investing the most in India. The countries mentioned below, are in no particular order
The strategic ties between India and France have been going on for over 20 years now. The two countries have supported each other in playing a key role in helping the economies grow. The trade-in goods between India and France is expected to increase to US$16.7bn by 2022. The partnership also promotes the Make in Indi initiative by for Indian and French defence enterprises to enter into arrangements for co-development and co-production of defence equipment in India. DRDO and SAFRAN discussions and Rafale re some of the benefits that come from this partnership. Some of the French companies that have created their identities in India are Saint Gobain, Renault, Rafale, Schneider electric and PSA.
The United States of America
Nothing defines a ‘’ dedicated follower’’ for American companies like an Indian consumer does. India America business deals are known to the world and every Indian consumer is aware and an active user of American products. From cocoa cola to the search engine giant, Google, American companies have been fulfilling the indispensable needs of the Indian market. With companies like Coca-Cola, Ford, Pepsico, Adobe Systems Incorporated and Microsoft Corporations, to name a few; the Indian-American ties are creating opportunities for India to place itself as an alternative to China to the international market.
The indo-german trade has been going on since the 16th century. India has as many as 1,600 German companies and over 600 Indo-German joint ventures in operation. Seeking investments in areas of smart city construction and construction of airports, FDI from Germany was at a cumulative amount of US$ 4.50 bn till 2017-18, increasing more than 41% from 2013-14. Some of the big names that re making it big in India are BMW, Merk, Volkswagen, Bosch and SAP.
Japan and India share strong business ties when it comes to infrastructure and automobile. In 2017, India-Jpn corporation east forum was set up to add to India-Japan corporation. With leading the automobile industry in India since years, Japan proposes to triple infrastructure orders to about US$300 bn by 2020. Round 1,305 Japanese companies are registered in India, including Mitsubishi, Honda, Toyota, Suzuki and Sony.
United Arab Emirates
India has strong bilateral ties with the whole of the middle east, especially UAE. The Abu Dhabi Investment Authority (ADIA) has announced its decision to invest US$ 1 bn in the National Investment & Infrastructure Fund. Cumulative foreign direct investment (FDI) equity flows from UAE into India reached US$898 mn in 2018-2019. UAE plans to invest in India’s agriculture sector, focusing mainly on imports of horticulture and food grain products