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levels, coupled with a floundering western economy, meant that China became the
worlds top destination for foreign investment in the years first half, edging the
U.S. out of the top position for the first time since 2003. China attracted US$59.1
billion in foreign investment in the first six months, down from US$60.9 billion in
the year-earlier half. in contrast, the U.N. data show that U.S. FDI inflows
reached US$57.4 billion in the first half of this year, down from US$94.4 billion
in last years period. But the U.S. may reclaim the top spot in the second half
according to a report by United Nations Conference on Trade and Development. FDI
flows to South Asiain which India is the dominant countryfell 40 percent in the
first half.

Indias growth has slowed sharply over the past year. W

Recent statistics have shown a steady growth trajectory for both India and China.
While GDP and manufacturing output numbers quantify a nations progress, softer
statistics are showing a discerning upward trend.

In recent report by International Finance Corporation both China and India were
considered amongst the nations with the highest improvements in doing business.
China was ranked 12 among the top improvers while India ranked 27. Statistics on
energy consumption also show an incline depicting higher productivity and wealth.
According to the Platts Top 250 Global Energy Company RankingsTM, Chinas energy
dragon came out roaring with 23 companies on the 2012 roster, giving the country
more companies in the Top 250 than any other nation except the United States.
India, too, had a strong showing on the Top 250 list, with 12 companies
representing six different energy sectors. The fact that these Asian companies are
outperforming themselves year after year is a testament to the regions enormous
growth and energy demand, Larry Neal, president of Platts said.

Continued high growth levels, coupled with a floundering western economy, meant
that China became the worlds top destination for foreign investment in the years
first half, edging the U.S. out of the top position for the first time since 2003.
China attracted US$59.1 billion in foreign investment in the first six months, down
from US$60.9 billion in the year-earlier half. in contrast, the U.N. data show that
U.S. FDI inflows reached US$57.4 billion in the first half of this year, down from
US$94.4 billion in last years period. But the U.S. may reclaim the top spot in the
second half according to a report by United Nations Conference on Trade and
Development. FDI flows to South Asiain which India is the dominant countryfell 40
percent in the first half.

Indias growth has slowed sharply over the past year. While its FDI inflows have
been much smaller than those into China and the U.S., Indias 43 percent drop was
considerable. Indian investment flows from overseas fell to US$10.4 billion in the
first half from US$18.2 billion in the first half of last year.

Clearly outlying the shift East, experts predict that China, India along with other
rapidly rising Asian economies will continue to pull FDI East where the economy
is more secure, robust and will clearly dole out higher returns.

Foreign direct investment can take a number of forms, including mergers and
acquisitions, building new facilities, reinvesting profits earned from overseas
operations and intracompany loans. FDI makes up a significant portion of total
business investment in many countries. Stagnant foreign investment flows can
compound existing problems, deepening a slowdown.

With the world slowing, foreign companies dont have the cash flow they once had
and theyre quite nervous about what their future is going to be, said Martin
Baily, an economist at the Brookings Institution, a Washington think tank.

An increasing share of investment has flowed into developing economies in recent


years, chasing the faster growth rates seen in those markets compared with advanced
economies. Its ama