New Delhi, June 13 (UNI) Indian entrepreneurs have made overseas foreign direct investment (OFDI) to Latin America and Caribbean (LAC) region cumulatively to the tune of 14.9 billion dollar.
According to Export-Import (Exim) Bank of India’s study titled “Indian Investments in Latin America and Caribbean: Trends and Prospects” released at the hands of Dr. Pedro Grados Smith, Chairman of the Board of COFIDE, in presence of Directors of the Latin American Association of Development Financing Institutions (ALIDE), during the 48th Annual General Assembly of ALIDE in Lima, Peru, the investment were especially towards agriculture & mining sector, followed by the manufacturing sector.
The study shows that the Indian investments are concentrated in a few LAC countries like the British Virgin Islands, Cayman Islands, Panama, Bermuda, Brazil, the Bahamas, Chile, Mexico, and Colombia. The study suggests that Indian investors could seek out other potential countries in the region to diversify their investment portfolios, in line with the potential identified.
The investment promotion agencies of the countries in the LAC region have put forward their priority sectors, taking into account the capability of each country. Considering the natural resources and other technological advancements that the region possesses, majority of the countries have identified the following areas as potential investment sectors viz. agribusiness, power and renewable energy, IT enabled services, manufacturing, tourism and mining, among others.
The LAC region is considered as one of the top investment destinations in the world due to its growing industrial and manufacturing strength, and continuous improvements in the ease of doing business parameters.
As a result, the FDI inflows in to the LAC region have grown by 22 percent to reach 142 billion dollar in 2016 from 117 billion dollar in 2007. Mexico was the largest recipient of the investment inflows in the LAC region, followed by Brazil, Peru, Uruguay, and Chile.
Among the sectors communications remained the biggest capital investment attracting sector followed by alternative and renewable energy, metals, coal, oil and natural gas; and paper, printing and packaging. Also, the top investors in the LAC region are dominated by developed countries, with recent emergence of Asian countries like China, and India.
UNI ADP SNU 1702