The report also said that in spite of these worries, foreign direct investment inflows into India grew 16.5 per cent to $28 billion in 2013.
According to 'UN-ESCAP Asia-Pacific Trade and Investment Report 2014’, India's business environment continues to deter foreign investors and its macroeconomic uncertainties remain a concern, says a PTI report.
"India is experiencing slower economic growth, running a high current account deficit, and enduring high inflation," the report said. However, the report also said that in spite of these worries, foreign direct investment inflows into India grew 16.5 per cent to $28 billion in 2013.
"FDI could help strengthen the economy, provide more decent and productive employment and encourage technological upgrading," it said.
It further added many sectors retain equity limits on foreign ownership which is not unusual, however, finding suitable joint venture partner risks hampering FDI inflows.
The report said the FDI cap of 51 per cent in multi-brand retail is a major obstacle in the FDI inflows to the sector.
"Foreign investors are now waiting for positive signals from the new government elected in early 2014," it said.
About the Asia-Pacific region, the report said the region remains the most dynamic pole of the global economy, however, growth in trade and investment is yet to return to its levels prior to global financial crisis.
“The overarching message of this year's report is that the lengthy shadows cast by the crisis highlight the need for economic rebalancing,” Shamshad Akhtar, UN Under-Secretary General and ESCAP Executive Secretary told PTI.
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