India has received $51 billion in foreign investment in 2019 and was the world’s 9th largest recipient of foreign direct investments (FDI) in 2019. The UN Conference on Trade and Development (UNCTAD) noticed a lower but positive economic growth in India in the post-Covid-19 pandemic period and India’s large market will continue to attract market-seeking investments to the country.
Key-Points:
In the developing Asia region, India was among the top five host economies for FDI.
The global FDI flows are forecast to decrease by up to 40 per cent in 2020, from their 2019 value of $1.54 trillion.This would be for the first time since 2005 that global FDI falls below the $1 trillion mark.
Foreign direct investment to developing economies in Asia, hit hard by the economic downturn caused by the coronavirus pandemic, are projected to decline by up to 45 per cent in 2020.
In India, the biggest FDI host in the subregion, with more than 70 per cent of inward stock, the number of greenfield investment announcements declined by four per cent in the first quarter, and Merger & Acquisitions contracted by 58.