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Global FDI flows fall by 38% in 2020, India 3rd Largest Recipient : OECD Data

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Global FDI hit 15-year low in 2020According to a new set of data released by the Organisation for Economic Cooperation and Development  (OECD), the global FDI (Foreign Direct Investments)  dropped by 38% in 2020 (compared to 2019) to USD 846 Billion,  which is a 15-year low (lowest  since 2005). India became the 3rd Largest Recipient of FDI inflows in 2020 with an inflow of USD 64 Billion.

i.China became the largest Recipient of FDI (USD 212 Billion) overtaking the United States (USD 177 Billion) for the 2nd time in six years, while Luxembourg finished 4th.

ii.The largest sources of FDI outflows in 2020 were Luxembourg, the United States and Japan.

iii.In 2020, global FDI flows represented only 1% of world GDP, the lowest level since 1999.

Largest Recipients of FDI in 2020

Country FDI inflow Position
India USD 64 Billion 3rd
China USD 212 Billion 1st
United States USD 177 Billion 2nd

Key Points

i.The recovery in cross-border Merger & Acquisition (M&A) activity, which began in the 2nd half of 2020 & continued in the 1st quarter of 2021 is expected to boost FDI equity flows in 2021.

ii.FDI inflows to G20 economies decreased by 28%.

ii.In January 2021, United Nations Conference on Trade and Development (UNCTAD) stated that India’s FDI inflows increased by 13% to USD 57 Billion in 2020.

  • It was majorly driven by investments in the Digital economy and start-ups.
  • The largest contributors to India’s FDI are Singapore & US.

Recent Related News:

November 30, 2020, The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry listed top investing countries FDI equity inflows in India during April-September 2020. Singapore was the top investor, followed by the USA & Cayman Islands.

About Organisation for Economic Cooperation and Development  (OECD)

Secretary General – Angel Gurria
Headquarters – Paris, France