The world might have come out of the economic lows of 2008. But that has not been the case with India. In 2008, global FDI flows plunged by over 15 per cent. Next year, 2009 was even worse when global FDI flows contracted by over 37 per cent.

Things began to look up as global flows picked up momentum and notched up a marginally positive growth in 2010. But India has remained the laggard.

The slump in FDI had affected the rich developed countries the most with flows dwindling by close to 30 per cent in 2008 and further by 44 per cent in 2009. Global recovery notwithstanding flows to the developed countries continued to ebb by close to seven per cent in 2010.

The global recovery was fuelled mainly by the developing countries although a few rich countries also played a significant part. Prominent among them are the US which recorded a positive growth of 43 per cent and Belgium which notched a handsome 49 per cent.

But it was the performance of the developing economies as a bloc which deserves special mention. Flows to Singapore spurted by 122 per cent while that to Hong Kong rose by 29 per cent. India was the exception recording a negative 3.5 per cent growth in 2010.

That was despite a sterling performance at the height of the crisis, in 2008. That was the year when global flows slumped. Flows to the rich countries plunged by 29 per cent. To the emerging economies FDI flows tapered to 11 per cent. But the surge in flows to India was quite high at 61 per cent.

While most of the developing countries were able to post small growth that year, flows to Singapore plunged by as much as 69 per cent.

Ever since the hammering it received in 2008, the rich countries have not fully recovered. Flow of FDI to these countries has not been the same. Meanwhile, most of the developing countries seem to have recovered and are making progress, attracting fresh foreign direct investments.

But India remains an exception. And it is beginning to cost the country dear.

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