Page 185 - ar2012

Appendix - Independent market
research report
By CBRE South Asia Pvt. Ltd
in 2011 and peak at around USD 2 tn in 2013. However, these forecasts have been deteriorating in the last few months
as growth forecasts are constantly being downgraded. Emerging economies dominate the investment landscape and
have been able to escape the decline in global investment activity. As per AT Kearney’s Global FDI Confdence Index
2012, China, India and Brazil are amongst the most attractive investment locations, followed by leading economies of
South East Asia. India has been able to improve its ranking on the index, rising to the second spot ahead of the United
States, as strong growth and huge potential has re-assured investors about the India story. Several large FDI proposals
in the oil and gas, metal, and telecom sectors point to continued interest in the market.
The opening up of the Indian economy during the liberalization reforms in 1991 led to the growth of capital infows
across various verticals. India has emerged as an attractive emerging market destination for foreign investment over
the last few years and has been able to restore investor confdence in its markets, even during the economic downturn of
2008. Ever since the Government permitted foreign investments into the economy, India has attracted Foreign Direct
Investment (FDI) worth USD 240 bn (INR 12,000 bn) from April 2000 to December 2011. This includes FDI equity infows
worth USD 158 bn (INR 7,125 bn), while the rest includes reinvested earnings and other capital. FDI infows into India
stood at approximately USD 24.18 bn (INR 1,120 bn) in 2011-12 (April-December) compared to USD 16.04 bn (INR
732 bn) during the same period in 2010-11, thereby witnessing a growth of almost 51% y-o-y. This signifes confdence
in the economic credentials of the country as the global economic downturn, the Eurozone crisis and stagnating domestic
growth did not deter global investors from participating in the country’s growth trajectory. Moreover, foreign companies
have been viewing India as a strategic hub for their operations and investments owing to an investor-friendly policy
environment and high potential for growth.
FDI Equity Infows into India (April 2000 to December 2011)
Country wise Cumuative FDI Equity Infows into India (April 2000 to December 2011)
Country wise cumuative FDI equity Infow (April ‘00 - Dec ‘11)
35
30
25
20
15
10
5
0
3,000
2,500
2,000
1,500
1,000
500
0
In USD Billion
In INR Billion
FDI Infows
Infow (INR bn)
% of total fow
% of total fow
% of total fows
Infow (% of total FDI Flow)
80%
70%
60%
50%
40%
30%
20%
10%
0%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
FY 01
Mauritius UAE France Germany Cyprus Netherlands UK USA Japan Singapore
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12
Source: Department of Industrial Policy and Promotion; * Figures for 2011-12 are till December 2011
Source: Department of Industrial Policy and Promotion
A-ITRUST ANNUAL REPORT 2011/2012 183