UNCTAD World Investment Report -Highlights

June 10, 2022

According to United Nations Conference on Trade and Development (UNCTAD), India has jumped by one position to 7^th in year 2021, among the top recipients of foreign direct investment (FDI).

Key Facts

UNCTAD announced in its latest World Investment Report, which was released on June 9, 2022.
As per report, FDI inflows into India reduced to USD 45 billion in 2021 from USD 64 billion in 2020.
United States with USD 367 billion, remained the top recipient of FDI.
US is followed by China with USD 181 billion and Hong Kong USD 141 at second and third position.
Among top 10 economies, only India witnessed a decline in its FDI inflows.
Outward FDI from India has increased by 43 per cent to USD 15.5 billion in 2021.

New International projects

Though the FDI flows into India has reduced to USD 45 billion. But several new international projects were announced. Most of the projects (23 in numbers) were in renewables. Large projects include:

Construction of a steel and cement plant in India for USD 13.5 billion, which was constructed by ArcelorMittal–Nippon Steel (Japan).
Construction of a new car manufacturing facility by Suzuki Motor (Japan), at the cost of USD 2.4 billion.

Global FDI flow

Global FDI flows has recovered to pre-pandemic levels, as per report. It has increased by 64 per cent to USD 1.6 trillion.
In the year 2022, business and investment climate has changed, amid the war in Ukraine. The war is resulting into a triple crisis of tighter financing, high food and fuel prices.
Other factors that affected the FDI are renewed pandemic impacts, negative sentiments in financial markets, increasing interest rate in major economies, and a potential recession.
Despite high profits, investment in new overseas projects by multinational companies were one-fifth below pre-pandemic levels.

United Nations Conference on Trade and Development (UNCTAD)

UNCTAD is an intergovernmental organization, established in 1964. It seeks to promote the interests of developing states worldwide. It was established by the United Nations General Assembly.

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