(BRUSSELS) - The flow of European cash into Indian firms surged more than fourfold last year, far surpassing EU investments into Chinese companies, estimates from the bloc's Eurostat data agency showed on Monday.

Foreign direct investment from the 27-nation European Union into India jumped to 10.9 billion euros (17.0 billion dollars) last year, up from 2.5 billion in 2006, Eurostat said.

Meanwhile, the flow of EU foreign direct investment (FDI) into China -- excluding Hong Kong -- slumped last year to 1.8 billion euros from 6.0 billion euros in 2006 despite intense media interest in the country as an emerging Asian economic power.

The drop meant that China was the least popular destination for EU FDI last year among the four major emerging economies, with oil-rich Russia taking in 17.1 billion euros in European investment and Brazil 7.1 billion euros.

The United States, Europe's biggest trade partner, remained by far the biggest destination for EU investors' cash, taking in 112.6 billion euros, up from 79.0 billion euros.

Overall, EU FDI into the rest of the world rose 53 percent last year to 419.9 billion euros, up from 275.0 billion euros in 2006.

Meanwhile, non-European investors ratcheted up investments in the EU by 89 percent last year to 319.2 billion euros from the 168.9 billion euros recorded in 2006.

Britain took in the lion's share of FDI into Europe last year, with 87.0 billion euros or 27 percent of the total.

Despite its diminutive size, financial services hub Luxembourg was the second biggest recipient of FDI in Europe last year with 50.2 billion euros or 16 percent of the total.

The Grand Duchy was followed by France which attracted 23.4 billion euros of FDI last year or seven percent of the total.

Eurostat defines FDI as a long-term investment by an investor in one country in a company in another country that gives the investor more than 10 percent control over the voting rights on the target company's board of directors.

Further details - Eurostat

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