$15b FDI outflow from India likely in 2007 |
Pti, New Delhi
With a bulk of Foreign Direct Investment (FDI) going out of the country, specially from manufacturing companies, the calendar year 2007 is expected to witness outward FDI to the tune of USD 15 billion surpassing inflows, an Assocham survey said.
The eco-pulse study on FDI outflow and role of manufacturing in mergers and acquisitions (M&A) revealed that 2007 promises to be a year of deals varying in size dominated by the manufacturing sector. Apparently the balance of power in manufacturing has started to shift to India more recently, apart from China and Brazil.
"Riding on strong balance sheets, good credit ratings and confidence shown by global business community, Indian manufacturing is leading India Inc's global quest," Assocham President Venugopal Dhoot said.
Owing to the restructuring taking place in Europe, Indian companies are targeting European entities offering cost competitiveness. The US and Africa are other destinations of invasion of Corporate India.
The boost will be provided by pharmaceuticals and automobiles particularly in terms of value, though IT is still likely to dominate as far as the number of deals is concerned, the study revealed.