Outward FDI from India touches $5 B
By agencies   |   Friday, 10 June 2005, 19:30 IST
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NEW DELHI: India and other Asian giants including, South Korea, Malaysia and Singapore have led the developing countries in outpacing the rich nations in outward Foreign Direct Investment, with outflow from New Delhi crossing $ 5 billion during 2003, says a U.N report. Tata Tea’s acquisition of Tetley Tea (UK) Lenovo’s (China) acquisition of IBM’s PC division, TCL’s (China) merger with Thomson television was cited as being among OFDI investments by the developing countries in developed countries by the report. "Outward Foreign Direct Investment (OFDI) from emerging markets was more widespread than though reaching a stock of $929 billion in 2003," the United Nations Conference on Trade and Development (UNCTAD) said in a report. OFDI flows from the emerging economies are dominated by Asia, it said adding some economies such as those of Hong Kong, Republic of Korea, Malaysia and Singapore are established investors. It said countries like Brazil, China, India and Mexico are at the take off stage of OFDI. India’s OFDI rose from $124 million in 1990 and touched $ 5,054 million in 2003, the UNCTAD report said. It said emerging market firms are investing abroad to improve their export competitiveness, expand markets, gain access to resources and technology by taking advantage of cheaper labor and improving R&D capabilities.

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