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China's FDI inflows almost at par with India

Contrary to popular belief that China attracts far more foreign direct investment than India, the Washington-headquartered International Finance Corporation, a member of the World Bank Group, has said that the difference in FDI as a percentage of gross domestic product between the two countries is a mere 0.3 per cent.

Foreign direct investment accounts for two per cent of China's GDP while it accounts for 1.7 per cent of that of India, a recently published paper by IFC said.

The paper also revealed that as per an internal survey conducted by IFC, business environment in India is better than China's.

Prepared by IFC director Guy Pfessermann, the paper, however, pointed out that India's FDI statistics did not conform to IMF (International Monetary Fund) standards as they exclude reinvested earnings, subordinated debt and overseas commercial borrowings which are all included in other countries' FDI statistics.

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