UN: India becomes the 9th largest FDI recipient in 2019
The United Nation Conference on Trade and Development reported of India to have had a positive growth in economy before pandemic emergency.
United Nation Trade body reported of India to become the 9th largest Foreign Direct Investment recipient and received USD 51 billion in foreign investment back in 2019. On Monday, The United Nation Conference on Trade and Development reported of India to have had a positive growth in economy before pandemic emergency. It further added that the nation would be able to grab potential marketing investments.
India had ranked 12th amongst the top 20 major economies across the globe in 2018 on receiving 42 billion dollars of Foreign Direct Investment which increased to 50 million dollars investment in 2019. The UNCTAD report also added that 2020 might see a recession in FDI flows by 40% from 2019 value of USD 1.54 trillion.
The report stated, “However, the country’s economy could prove the most resilient in the region. FDI to India has been on a long-term growth trend. Positive, albeit lower, economic growth in the post-pandemic period and India’s large market will continue to attract market-seeking investments to the country.” Report further added, “The digital economy and real estate and property development, two industries that attracted growing FDI before the pandemic, could evolve in different directions.”
2020 pandemic has already lead to major downfall in the economy due to novel coronavirus spread, the downfall projects to decline by 45 percent.
On the marketing investments to have interested in India, the report also said, ”India’s most sought-after industries, which include professional services and the digital economy, could see a faster rebound as global venture capital firms and technology companies continue to show interest in India’s market through acquisitions,”
The digital sector of the nation has seen expansion in the investment as $650 million deals were concluded by the investors in F.Y.2020. Other aspects of the report included increase in investments of information and communication technology, construction industry and mega deals in M&A activity. UNCTAD Secretary-General Mukhisa Kituyi said, “The outlook is highly uncertain. Prospects depend on the duration of the health crisis and on the effectiveness of policies mitigating the pandemics economic effects.” The Report also emphasized on decrease in investments from India in 2020 with downfall in the MNEs earnings by 25% because of the virus spread. On the global scale the report stated of the FDI flows to have pressurized in the current year due to COVID-19 circumstance.
Information Credit:- The Financial Express