Tag Archives: FDI

While inter-state relations do matter, the political relations between Beijing and Manila do not solely shape the rise or fall of Chinese foreign direct investment.

Pakistan’s economy faces fundamental challenges to sustain its economic growth and hence economic security. With falling domestic and foreign investments, the current policy of consumption-led growth is threatening even to maintain the present low economic growth.

Asia needs commodities for its dynamic global factory and Latin America has abundant natural resources. Asia needs food for its large population and Latin America has fertile agricultural land. One of the new drivers for business confidence is the spread of free trade agreements (FTAs) between the two regions.

A Modi-Obama summit provides an opportunity for an all-encompassing look at geopolitics and geoeconomics across the region and beyond. This option should not be foreclosed by concentrating on the smaller items, says one Indian analyst.

Talk of allowing up to 100 percent foreign direct investment has proven controversial, to say the least. For Indian companies—which include Tata Group, Larsen and Toubro, Bharat Forge, Mahindra and Punj Lloyd—still struggling to find their feet in the areas of manufacturing, production, technology, capital and competitiveness, this concern may well be genuine.

Now with business-oriented leaders in both countries committed to economic development, and the possible elimination of barriers to trade liberalization and investment, there is great potential for Pakistan to attract FDI from India.