FDI inflows to India decline by 26% in 2021: UNCTAD

The report notified developed economies have shown the biggest projection in vast, with FDI touching an evaluated $777 billion in 2021.

Foreign Direct Investment(FDI) inflows to India in 2021 slipped by 26%, mainly due to large M&A deals marked in 2020, the UN trade body has reported. The UN Conference on Trade and Development (UNCTAD) Investment Trends Monitor published on Wednesday said global foreign direct investment flows showed a strong rebound in 2021, growing 77% to an estimated $1.65 trillion, from $929 billion in 2020, surpassing their pre-COVID-19 level.

“Recovery of investment flows to developing countries is encouraging, but the stagnation of new investment in the least developed countries in industries important for productive capacities, and key Sustainable Development Goals (SDG) sectors- such is electricity, for or health- is a major cause for concern,” said UNCTAD Secretary-General Rebeca Grynspan.

The report notified developed economies have shown the biggest projection in vast, with FDI touching an evaluated $777 billion in 2021 which is thrice the exceptionally low level in 2020. FDI inflows in developing economies are projected by 30% to nearly $870 billion, with a growth progression in East and South-East Asia (+20%), an improvement to near pre-pandemic levels in Latin America and the Caribbean, and an uptick in West Asia.

Of the total rise in global FDI flows in 2021 ($718 billion), greater than $500 billion, or almost three quarters, was seen in developed economies. Also, Developing economies, exceptionally least developed countries (LDCs), saw modest recovery growth, the report said.

The World Investment Report by UNCTAD published in June the previous year said that midst of a pandemic, “India collected $64 billion in FDI flows in 2020, and stood as the fifth-largest recipient of FDI inflows in the world. FDI to India inclined 27% to $64 billion in 2020 from $51 billion in 2019, stimulated by acquisitions in the information and communication technology (ICT) industry,”  the report said.

 

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