- This is an increase of 20% from the 42 billion dollars of FDI received in 2018, when India ranked 12 among the top 20 host economies in the world.
- India is the largest South Asian recipient of FDI in 2019.
Following table shows the top recipients of FDI:
Rank | Country | Amount |
---|---|---|
1 | United States (US) | $246 bn |
2 | China | $141 bn |
3 | Singapore | $92 bn |
9 | India | $51 bn |
India
-The number of greenfield investment announcements declined by 4% in the first quarter, and Merger & Acquisitions (M&A) contracted by 58.
-Investors concluded deals worth over $650 million in the first quarter of 2020, mostly in the digital sector in India.
-There is lower but positive economic growth in India in the post-COVID19 pandemic period and the country’s large market will continue to attract market-seeking investments.
Developing Asia; Largest FDI recipient region
In the developing Asia region, India was among the top five host economies for FDI viz. China, Hong Kong (China), Singapore, India and Indonesia.
- In 2019, FDI flows into developing Asia declined by 5% to $474 billion
- Despite the decline, it remained the largest FDI recipient region, hosting more than 30% of global FDI flows.
- In 2020, FDI is projected to decline by 30 to 45%.
South Asia
FDI flows to South Asia increased by 10% to $57 billion in 2019, the growth driven largely by a rise in investment in India. However, FDI is expected to contract sharply in 2020.
Global
The global FDI flows are forecast to decrease by up to 40% in 2020, from their 2019 value of $1.54 trillion. This would be for the first time since 2005 that global FDI falls below the $1 trillion mark.
- FDI is projected to decrease by a further 5 to 10% in 2021 and will initiate a recovery in 2022.
Outflows
-Outward FDI flows from Asia declined by 19% to $328 billion due to a 52% drop in Mergers and acquisitions (M&A) purchases by Asian companies in 2019.
-Investment from South-East Asia declined from $63 billion in 2018 to $56 billion
-Outflows from South Asia grew 6%, driven by investment from India. Companies in India are the sub region’s largest investors, with more than 90% of outflows in 2019.
-Investments from India are expected to decline in 2020 due to the impact of the pandemic
-The overall share of developed economies in world FDI outflows is 70% in 2019 from 54% in 2018.
About World Investment Report:
It has been published annually since 1991 focusing on trends FDI worldwide, at the regional and country levels and emerging measures to improve its contribution to development.
About UNCTAD:
Headquarters– Geneva, Switzerland
Secretary-General– Dr.Mukhisa Kituyi