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Investment In India Plummets 56% In April-June, China Takes Lead

by GoNews Desk 1 week ago Views 789
Investment In India Plummets 56% In April-June, Ch
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Amid the Coronavirus pandemic and the subsequent global lockdown which have slowed the world's economic cycle, many believed that investment would shift from China to India. But according to statistics, while China had a billion-dollar foreign investment, the FDI in India has plummeted.

According to the Department of Promotion of Industry and Internal Trade data, a government agency which reports FDI, showed that investment in India declined in April to June quarter. While an investment of Rs 1,13,511 crore was made in 2019 during April-June, the investment came down from Rs 56,000 crore to Rs 49,820 crore in the same period this year.

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Toyota, one of the world's largest automobile companies, invested around 9 billion yuan in June 2020 to set up a factory in Tianjin province and in July 2020, a European company named Daimler invested 804 million yuan.

Volkswagon, another German automobile company, announced an investment of 1.1 billion yuan in China in May 2020. In July 2020, the European food brand invested 100 million euros in China unit.

Post-pandemic, many international companies like Pepsi, Qualcomm, Shell Group, Honeywell International thought it better to invest billions of dollars in China. Note during the COVID-19 crisis when the whole world was in lockdown and it was feared that investors would leave China and turn to India but a reverse picture is being seen in India.

Simply put, China still remains the first choice of investors and India needs to do something new to attract investment. According to data from the International Monetary Fund, China's GDP growth in the April-June quarter was more than 12 percent, while India's growth rate fell by 25 percent.

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