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Indian Outward Investments to EU grew from €25 to €598 million in 5 years
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Medium incomes Indian states’ economy larger than 1/3rd of EU nations
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Most inward investments to India is Institutional
Indian investments to the European Union (EU) have grown from €25 million in
1999 to €598 million in 2003 while EU investments in India have remained
stagnant at €800 million since 1999. According to the World Investment Report
other emerging economic nations too are seeing large growth in outward
investments compared to inward foreign direct investment (FDI).
They also point out that the size of the Indian economy has grown rapidly with
many medium-income states like Andhra Pradesh or Tamil Nadu have larger Gross
Domestic Product (GDP) figures than 1/3rd of the EU states and 7 out of 10 of
the new EU member states. This margin can be much higher with more
deregulation.
Overall, India attracts 25% of total inflows through FDI while the rest is
through Foreign Institutional Investors (FII) while China has 80% FDI and the
rest FII. Experts say that procedural hurdles, exemptions, complicated rules,
and vague language has grown regulatory documents from 20 pages a year ago to a
large library.
Experts say that FDI will not grow much while India continues with its
complicated and clumsy approach to deregulate.
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