India Fifth Largest Recipient Of Inflows In World, Receives $64B FDI In 2020: UN
- ByStartupStory | June 21, 2021
According to a UN report, India, the fifth largest recipient of inflows in the world, received $ 64 billion in Foreign Direct Investment in 2020. The World Investment Report 2021 by the UN Conference on Trade and Development (UNCTAD), released Monday, said global FDI flows have been severely affected by the pandemic and have plunged by 35 percent in 2020 to $1 trillion from $1.5 trillion the previous year.
Lockdown caused by COVID-19 around the world slowed down existing investment projects, and prospects of a recession led multinational enterprises (MNEs) to reassess new projects. The report said in India, FDI increased 27 percent to $64 billion in 2020 from $51 billion in 2019, pushed up by acquisitions in the information and communication technology (ICT) industry, making the country the fifth largest FDI recipient in the world.
The pandemic boosted demand for digital infrastructure and services globally. This led to higher values of greenfield FDI project announcements targeting the ICT industry, rising by more than 22 percent to $81 billion. The report noted that the second wave of the COVID-19 outbreak in India weighs heavily on the country’s overall economic activities.
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