Australia sees 89 percent increase in FDI from India
Wednesday, 15 August 2007, 19:30 IST
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Sydney: Australia's appeal as an investment destination continues with total stock of foreign direct investment (FDI) from India amounting to A$608 million (over US$500 million) at the end of 2006, representing an increase of 89 percent from the previous year. "Investment from India has grown steadily over the past five years, and over the year to 2006 it almost doubled. This growth clearly signals India's growing interest in Australia as an investment destination," said Sandra Fox, Invest Australia's senior investment commissioner for India. Invest Australia is the government's inward investment agency that helps international firms build their business in Australia. It has been operating in the Indian market for over three years and opened offices in Mumbai and New Delhi in 2006. "What we are experiencing is interest in Australia, not only in our resources sector, but from a range of Indian companies as a location for providing significant value addition to the advanced manufacturing and Information and Communications Technology (ICT) supply chain and as an important complementary market, and our strong biotechnology capabilities," said Fox. In June, Indian biotechnology company Biocon and Deakin University entered into a collaborative research agreement to develop a business case for a mammalian cell bio-processing facility. Invest Australia's CEO Barry Jones said: "Australia's time zone advantages, its proximity to Asia and its Western business environment make it a perfect business bridge to the rapidly expanding markets of India and China. With the Asia-Pacific expected to account for 45 percent of the world's GDP by 2015, Australia is also a destination of choice for foreign companies looking for a strong and stable base in the region." The US is still ranked as the largest single source of FDI stock for Australia followed by Britain and Europe. Jones added: "As India and China look to Australia to secure energy supplies, US investors should monitor investment opportunities in Australia's energy and resources markets. "All eyes will be on Australia in September when it hosts the next Asia Pacific Economic Cooperation (APEC) summit in Sydney. Australia will play a key role in improving and securing clean energy supplies for the Asia-Pacific region." According to recent data from the Australian Bureau of Statistics, FDI into Australia was up by 11.3 percent in 2006 to over Aus$315 billion. The Organisation for Economic Cooperation and Development (OECD) forecasts Australia's economic growth to be 3.3 percent in 2007 and 2008, well above a forecast average OECD growth rate of 2.7 percent.
Source: IANS
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