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INDIA STILL HOT FOR FDI

The US financial crisis has not been able to affect the FDI inflows in India. As per the World Economic Report prepared by United National Conference on Trade & Development (UNCTAD) the problems related to sup- prime crisis and fall out of major financial institutions like Freddie Mac and Fannie Mae, Lehman Brothers, AIG (American Insurance Group) and many more have disrupted financial markets in US and some European countries. This has created a liquidity crunch in the markets. The report also states that the economic recession in US & European countries will not affect developing countries like India, China, Brazil etc which are growing at a faster rate. The report also stated that India will find it difficult to fund the $ 495 billion infrastructure program spread over five years till 2012. According to World Bank estimates, $ 500 billion are required over a period of 2001-2010.