India’s share rose to $12 billion.
By Sreekanth A. Nair
India has overtaken China in terms of direct equity investment by US investors.
A data released by the US Treasury shows that direct investment in India by the US investors has risen to $12 billion in December 2015 from $7 billion in September 2013. During the same period, China’s share has declined from $12.8 billion to $11.1 billion.
India’s improvement is marked at a time when India’s overexposure within the emerging market basket has slowly decreased in 2015.
According to data compiled by Kotak Institutional Equities, the average US investor’s equity allocation to emerging markets has declined to 12%. The rate was at its peak of 18 percent in December 2009.
The Cayman Islands, the UK and Japan are the top three countries preferred by US investors. These three countries have 13.4, 13.3, and 10.2 percent share of the US equity, respectively.
Meanwhile, after registering continuous annual growth for nearly a quarter century, the US-India trade had decreased in 2015 from the previous year. The two countries traded in goods and services worth $66.271 billion in 2015, which is $581 million lower than the trade volume in 2014.