FDI in India to Rise 66% to $80 bn in Two Years: Morgan Stanley Morgan .

A leading global investment bank has forecast a 66.6 per cent jump in foreign direct investment (FDI) in India. Though India still does not rank highly as an FDI destination, the country is likely to receive FDI of $80 billion in the next 12-24 month as compared with $48 billion in the last two-year period, Morgan Stanley said on Monday.

"India was one of the few emerging markets to see FDI declines in 2010," said Ridham Desai, Head of India Research at Morgan Stanley, in its latest survey. "Given this, we felt it was important to shed more light on this potentially significant growth driver for the Indian economy. The findings show that global companies see real opportunity in India and that their investment appetite is increasing, notwithstanding continuing negative perceptions around infrastructure bottlenecks."

In the findings of its latest proprietary research survey, Morgan Stanley noted that 20 per cent of the firms covered in the survey have plans to invest in India over the coming 12-24 months. The previous two years saw an inflow of $48 bn in FDI into the Indian market. As per the survey, India still does not rank highly as an FDI destination amongst global investors due to infrastructure concerns and thus India isn't considered as a top FDI destination. The survey, the latest in the AlphaWise Evidence Series, saw 176 of the firm's internationally-based research analyst team covering 1,766 global firms to determine the likely investment opportunity recognised by these companies in India.

Source : indianexpress.com