According to a new report released by the United Nations Commission for Trade & Development (UNCTAD) this week, global transnational flows of investment have exceeded the numbers just prior to 2008 crisis, although they are below the 2007 high by about 23 percent.
The top destination for foreign investment remains China. But the next two countries may surprise some. The United States, despite all the bad news of recent years investment destination considered the most desirable by the second largest percentage of respondents to the UNCTAD survey. And India is the third, see page 54 of the report.
The list goes on to Indonesia, Brazil, Australia, the United Kingdom, Germany and Russia. Russia now trails the other BRIC countries in many measures and is ranked #9 on this one.
What this means
Both India and the USA have received their share of bad news and bad governance news in particular in recent months. In the case of India, Coca Cola committed to $5 billion in and Ikea to about $2 billion in just the last month. Companies believe that they can profit handsomely in India and are voting with their pocketbooks, despite some some confusion about tax regimes.