US investments in India outpacing China
Ever since Narendra Modi became the Prime Minister of India, investments from the US have been increasing and more over have surpassed China. The Barack Obama administration has announced that the US has increased investments in India outpacing the largest market globally. Robust Indian economy growth rate has been attracting more investments as well from the US.
The Barack Obama-led government that is outlining US policies and priorities for 2016 in South and Central Asia, has stated that much of the focus was on economic partnership. The robust growth of US investments in India was considered to be dramatic for some market observers. The US has made investments in India since May 2014, when the Narendra Modi-led NDA government has assumed charge in India, more than it put in the dragon country.
The Economic Times reports that 30 US companies invested $15 billion during the past 18 months in India. 50 more US firms are planning to invest in India to the tune of $27 billion by 2017. The foreign direct investment (FDI) from the US in India was estimated to be $28 billion in 2014. Cumulative FDI inflows into the country were $13.19 billion during April 2000 and September 2014, accounting six percent of the total FDI in India. The US is the sixth largest source of FDI for India, according to the data from US-India Business Council and US Bureau of Economic Analysis.0
Nisha Desai Biswal, US Assistant Secretary of State, said "The high-level engagements between our two countries since May of 2014 include six at the leader-level including the Nuclear Security Summit this week and we could well see more before the end of the administration."
India and China are leading in investments in renewable energy. Investments in solar power, wind power and other renewable energy capacities in developing nations have surpassed that in developed nations for the first time. Investments by developed countries fell eight percent to $130 billion as against $156 billion investments in developing countries during 2015, according to a report on 'Global Trends in Renewable Energy Investment 2016' from United Nations (UN). China, India and Brazil have recorded a combined investment of $156 billion in renewable energy capacity in 2015, as reported by The Hindu.
India's Prime Minister Narendra Modi visited the US in September 2014. During Modi's US visit, an India-US Investment initiative was conceived with a greater focus on FDI, portfolio management, capital market development and infrastructure. US-India Infrastructure Collaboration Platform has been created with an objective of accessing North America's technology to meet India's infrastructure requirements.
Time further adds that the encouraging economic growth of India has positioned the South Asian nation beating China and the US to emerge as top global destination for FDI in Greenfield projects. According to the data from fDi Markets, a part of Financial Times, India recorded investments $3 billion higher than China and $ 4billion more than the US for Greenfield projects. The total FDI in Greenfield projects was $30 billion by June 2015.
India stood on the top position among top-10 in attracting investments in renewable energy sector. Investments in renewable energy sector rose 22 percent to $10.2 billion. US, Japan, UK, Brazil, South Africa, Mexico and Chile were among other top-10 nations in investments during 2015.