FDI flows to India falls by 26% in 2021: UNCTAD report

Foreign Direct Investment (FDI) flows to India in 2021 were 26% lower, mainly because large M&A deals recorded in 2020 were not repeated, the UN trade body has said. The UN Conference on Trade and Development (UNCTAD) Investment Trends Monitor published on January 19, 2022 said global foreign direct investment flows showed a strong rebound in 2021, growing 77 percent to an estimated USD 1.65 trillion, from USD 929 billion in 2020, surpassing their pre-COVID-19 level.

In 2020, FDI to India was recorded at USD 64 billion. This was 27 percent more compared to USD 51 billion FDI in 2019. UNCTAD said that low FDI in India was mainly because large cross-border mergers & acquisitions (M&A) deals recorded in 2020 were not repeated.