According to the United Nations Conference on Trade and Development (UNCTAD), India’s economy could prove the most resilient in South Asia and its large market will continue to attract market-seeking investments to the country even as it expects a dramatic fall in global foreign direct investment (FDI).
Daily Current Affairs Quiz 2020
Key-Points
India jumped to ninth spot in 2019 on the list of global top FDI recipients from the twelfth spot in 2018.
Due to the Covid-19 crisis, global FDI flows are forecast to nosedive by upto 40% in 2020, from their 2019 value of $1.54 trillion, bringing FDI below $1 trillion for the first time since 2005.
FDI is projected to decrease by a further 5-10% in 2021 and a recovery is likely in 2022 amid a highly uncertain outlook.
FDI inflows into India rose 13% on year in FY20 to a record $49.97 billion compared to $44.36 billion in 2018-19.
In 2019, FDI flows to the region declined by 5%, to $474 billion, despite gains in South East Asia, China and India, according to the Geneva-based organisation.
Foreign direct investment (FDI): Foreign Direct Investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
