According to United Nations latest report, India received around $64 billion in foreign direct investments in the year 2020. It has emerged the 5th largest recipient of FDI inflows across the world.

World Investment Report of 2021

  • The report was released by United Nations Conference on Trade and Development.
  • According to report, global foreign direct investments flows have been severely hit by covid-19 pandemic.
  • Foreign direct investments flow have decreased by 35% in 2020 to $1 trillion from $1.5 trillion in 2019.
  • Lockdowns across the world have slowed down existing investment projects, and prospects of multinational enterprises to start new projects.

Study on India

  • According to United Nations report, foreign direct investments has increased by 27% to $64 billion in 2020.
  • Foreign direct investments was increased up by acquisitions in information and communication technology (ICT) industry.
  • COVID-19 Pandemic has also increased demand of digital infrastructure and services globally.
  • It has led to higher values of greenfield FDI project in Information and Communications Technology industry and has increased by more than 22%.  
  • The Report highlights, second wave of COVID-19 India have impacted country’s overall economic activities.
  • India has been ranked 18 among world’s top 20 economies for FDI outflows.
  • Report further highlights, Investments from India will stabilise in the year 2021, with the support of country’s resumption of free trade agreement talks with European Union and its strong investment in Africa.

India is 5th largest FDI recipient in 2020 India is 5th largest FDI recipient in 2020