New York, Sept. 17 (PTI): India cornered a major part of the foreign direct investment inflows to south Asia in 2001 which increased by 32 per cent over the previous year to $ 4 billion in the region, a new United Nations report says.
Of that amount, investment in India was $ 3.4 billion in 2001, showing that its steps to liberalise the economy are paying off, according to the World Investment Report 2002. But inflows to other countries in the region stagnated or declined apparently due to perceived instability in investment environment, particularly after September 11 last year.
India, which was sixth among top 10 economies in Asia and Pacific region, saw its flows rise by $ 1.1 billion from $ 2.3 billion to $ 3.4 billion. But India’s performance was nowhere near that of China where inflows touched $ 46.8 billion up from $ 40.8 billion last year. Hong Kong, which was the second largest economy, saw FDI decline by 62 per cent to $ 22.8 billion from massive inflows of $ 61.9 billion recorded in the previous year.
Singapore saw its FDI rise from $ 5.4 billion to $ 8.6 billion but investments in Taiwan declined to $ 4.1 billion from $ 4.9 billion. However, still it had fourth position among the top 10.
Thailand, which occupied the fifth position, recorded an increase in flows by $ 1 billion from $ 2.8 billion in 2000. FDI flows to Turkey increased from $ 1.8 billion to $ 3.3 billion to give it seventh position and South Korea at eighth position found its inflows recording a sharp decline from $ 9.3 billion to $ 3.2 billion. Kazakhstan attracted $ 2.8 billion and the Philippines $ 1.8 billion.