India will continue to attract FDI

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.