With $12 billion US investment in 2015, India has overtaken China in terms of direct equity investment by the US investors.
A data released by the US Treasury shows that India has overtaken China in terms of direct equity allocation by the US investors. As at December 2015, he statistics reveals India makes up 1.8% of US foreign equity holdings, against 1.6% of China.
The study reveals that US direct investment in Indian equities 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.
Importantly, India’s improvement is marked at a time when India’s overexposure within the emerging market basket has slowly decreased in 2015.
However, 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.