Business

India to trail China in capital flows

NEW DELHI: Even as India is expected to experience the largest growth in foreign capital inflows in the next five years, it would still be China that would corner the biggest share of corporate investment by 2013-14 and move ahead of the U.S., a survey by consultancy major KPMG has said.

According to its latest survey titled ‘Global corporate capital flows 2008-09 to 2013-14’, although the growth scenario of investments in India is overwhelming, it is still way behind China which is already acknowledged as a major new economic power and is expected to receive funds from 24 per cent of corporate investors globally.

“India is expected to lead the world in terms of investment in the manufacturing sector with 25 per cent of corporates expecting to invest five years from now and is projected to do particularly well in industrial products, where it will displace the U.S. to take second place behind China,” the survey said. “It is significant to note while 10 per cent of the companies surveyed expect to invest in India now, that number will go up to 18 per cent in five years,” KPMG’s Head of Tax and Regulatory Services in India, Sudhir Kapadia, said.

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