India among the top 10 global economies: UN Report

India has emerged among the top 10 global economies despite setbacks in terms of FDI: UN report.

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Despite the fall in Foreign Direct investments. India strives to remain of the world’s top 10 Global economies in this regard. The FDI inflows have decreased from USD 19 billion to 45 billion dollars in the year 2021. According to the World Investment Report of the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment flows rebounded to pre-pandemic levels last year, totaling approximately USD 1.6 trillion.

But the prospect for such investments is turning rather a pale day by day due to the excess inflation that is present in the country due to the humanitarian crisis in Ukraine and the restrictions imposed by the Western world against Russia. The war has led to the macroeconomic shocks that were set off by the energy and food crisis, which in turn has increased the uncertainty of investment. 

India among top 10 global economies

The country was previously at USD 64 billion dollars in terms of foreign investment in the year 2020. But the number decreased to USD 45 million dollars in 2021. India is currently ranked in 7th position. After the US, China, Hong Kong, Singapore, Canada, Brazil etc. 

“Flows to India declined to USD 45 billion. However, a flurry of new international project finance deals. Were announced in the country. 108 projects compared with 20 projects on average for the last 10 years”. The report said, adding that it had recorded the largest number of projects in renewables. 

The UN report had also noted that the effects of the war. Would have a huge effect on the investments in various countries. As well as will also affect the Sustainable Development goals (SDGs). The effect also extends to the entire world economy and the war has helped make it a fragile one. The war has led to the cancellation of various big projects that were planned ahead. It also led to the exodus of many Multinational Enterprises from Russia and the widespread loss of assets. 

The report said despite successive waves of COVID-19. Moreover, FDI in developing Asia rose for the third consecutive year to an all-time high of USD 619 billion. Thus, underscoring the resilience of the region. Therefore, Asia receives the most of the FDI in the world, accounting for 40% of global inflows.

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