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Despite Kargil crisis, India remains foreign investors' favourite: CII

Kargil and political instability are no dampener for foreign direct investment or FDI as India is seen to be an attractive destination for FDI.

Since January-March 1999, Iindia attracted $ 2.38 billion FDI as compared to $ 3.3 billion in the whole of 1998.

In rupee terms, inflows during January - March were Rs 60.16 billion, which is 45 per cent of Rs 133.39 billion during the whole of 1998, an analysis done by the Confederation of Indian Industry said.

While the available FDI data relates to pre-Kargil period, it coincides with the period of political uncertainty.

While there was a slight decline in total FDI inflows in 1998 from Rs 164.25 billion in 1997 to Rs 133.39 billion in 1998, the phenomenon could be largely attributed to the after-effects of the Asian crisis and the global economic slowdown.

''Thus, despite the prevailing situation of political instability and the Kargil conflict, India is seen to be an attractive destination for FDI,'' the chamber said.

It said the recent survey conducted by the global management consultant A T Kearney bore out this fact as CEOs of the world's 1000 top corporates have ranked India the sixth most preferred destination for FDI. India ranked behind the US, China, the UK, Brazil and Mexico and moved ahead of Germany and Poland.

UNI

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