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China Vs India Foreign Direct Investment
The war is between two equally powerful fast developing nations. One is a nation that is increasing its growth at a much faster rate than any other nation in the world. There was a time when China could have been beaten but now it seems the nation is going to even start producing the basic needs for humans. The track record of China alluring foreign direct investment is much more than India. |
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India has a great level of growth when it comes to the service sector but compared to China it is far too behind. There are certain loopholes in calculating the FDIs received by China and India. There needs to be a complete check on the actual figures than what people in China claim. It is also send that the FDI reports of India are highly mismatched and underreported due to certain difference in measuring the FDI according to global standards.
The net FDI flow of China reduced considerably from $40.7 to $20.3 billion in 2000. The FDI computation reports RBIs official balance to be $3.2 billion to about $8.1 billion in 2000. India needs to urgently address the issue of alluring global investors and aligning FDI on the basis of global standards. There is a common understanding of skepticism that China undergoes which is known as round-tipping. Due to this, firms from neighboring countries illegally try to transfer funds to China which gets invested in China. This happens due to the preferential treatment and incentives that can be benefited if transferred in China. The other kind of reinvested earnings by multinationals do not get distributed to shareowners but are again invested in the country. Hence, there are many discrepancies that take place while calculating FDI and showing the incorrect picture to the world.
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Concept Of Investment
 Concept of investment can be understood only after understanding the exact definition of investment. Whenever someone invests certain energy into any task or something irrespective of its form such as the mental energy or money, one wants a return for the same. More..
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