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India received $64 billion in FDI last year; fifth-highest in the world

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India received a foreign direct investment (FDI) inflow of $64 billion in 2020, making it the fifth-largest recipient in the world.

It is a significant surge as compared to $51 billion received in 2019, according to the World Investment Report 2021 released on Monday by the UN Conference on Trade and Development (UNCTAD). India was ranked eighth in the list of host countries receiving FDI in 2019.

“FDI in India rose, pushed up by acquisitions in the information and communication technology (ICT) industry, making it the fifth-largest recipient in the world,” the report said.

US leading

As per the report, the US is leading the list of host countries for FDIs. It received $156 billion in FDIs in 2020—a massive decline from the $261 billion it received in 2019. China is second on the list with $149 billion received in 2020 as against $141 billion in 2019. Hong Kong is third on the list with an FDI inflow of $119 billion as against $74 billion in 2019.

Despite witnessing a decline in FDI inflow to $91 billion in 2020 as against $114 billion in 2019, Singapore is fourth on the list. India, which is fifth on the list, is ahead of countries such as Germany, Ireland, France, Australia, the UAE, Canada, Japan and Sweden.

Decline in global FDI inflows

Global FDI inflows declined by 35 per cent to $999 billion in 2020 as against $1.53 trillion in 2019. The decline is attributed to the uncertainty caused by the COVID-19 pandemic inflated by strong fluctuations in conduit and intrafirm financial flows, and by corporate reconfigurations.

The maximum FDI inflows decline of 80 per cent was witnessed in Europe, followed by 45 per cent in Latin America and the Caribbean and 42 per cent in North America. Developing Asia, already the largest FDI recipient region, accounting for more than half of global FDIs, registered a rise of 4 per cent to $535 billion.

 

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