As per reports from Nomura India, despite the recent massive slump in foreign direct investment (FDI) inflows, India remains the hottest investment destination in the world after China, and inflows will return to the pre-crisis peak levels by early 2012. FDI inflows plunged 25 per cent in the April-January, 2010-11 to US$ 17 billion year-on-year. The figure was more alarming in January 2011 when it nosedived by 48 per cent to US$ 1.04 billion. Following the 2008 crisis, other emerging markets too, saw a sharp drop in FDI inflows but picked up steam after two years, unlike India.
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