New Delhi: India's foreign direct investment receipts jumped by nearly 27% to $64 billion in 2020, making the country the fifth-largest FDI recipient in the world at a time when global FDI investment declined by 35% due to the Covid-19 global pandemic, said a report by United Nation’s trading body United Nations Conference on Trade and Development (UNCTAD).
According to UNCTAD's World Investment Report, 2021 released on Monday, the Foreign direct investment (FDI) flows to developing countries in Asia increased by 4% to $535 billion in 2020, reflecting resilience amid global FDI contraction.
"Despite the pandemic, FDI to and from the region remained resilient in 2020. Developing Asia is the only region recording FDI growth, accounting for more than half of global inward and outward FDI flows," said UNCTAD's director of investment and enterprise, James Zhan. "FDI prospects in 2021 for Asia are more favourable than the global average, because of recovery in trade, manufacturing activities and a strong GDP growth forecast," he added.
The United States retained its top position as the world's largest FDI recipient with $261 billion investment, followed by China, which received $149 billion, and Hong Kong (SAR) in China received $119 billion. If one looks at cumulative FDI received by China and Hong Kong (SAR) then it accounts for $268 billion and surpasses the FDI receipts of the US last year. Singapore ranks fourth with $91 billion FDI while India received $64 billion as against $51 billion received in 2019, an increase of 26.7%.
Only South Asian country to register growth
According to the report, FDI in South Asia rose by 20% to $71 billion, driven mainly by a 27% rise in FDI in India to $64 billion. India accounts for more than 90% of the total receipts in South Asia.
