UN: India is 5th largest FDI recipient in 2020

As per UN report, India received USD 64 billion in foreign direct investments (FDI) in 2020. It has emerged the fifth largest recipient of FDI inflows across the world.

World Investment Report 2021

  • “World Investment Report 2021” was released by UN Conference on Trade and Development (UNCTAD).
  • As per the report, global FDI flows have been severely hit by covid-19 pandemic.
  • FDI flow have decreased by 35 per cent in 2020 to USD 1 trillion from USD 1.5 trillion in 2019.
  • Lockdowns across the world have slowed down existing investment projects, and prospects of multinational enterprises (MNEs) to start new projects.

Study on India

According to report, FDI has increased by 27 per cent to USD 64 billion in 2020. FDI was increased up by acquisitions in information and communication technology (ICT) industry. Pandemic has also increased demand of digital infrastructure and services globally. It has led to higher values of greenfield FDI project in ICT industry and has increased by more than 22 per cent.  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 2021, with the support of country’s resumption of free trade agreement (FTA) talks with European Union (EU) and its strong investment in Africa.




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