India gained one notch to emerge the seventh highest foreign direct investments (FDI) recipient in calendar 2021 despite inflows shrinking about 30% to $45 billion from $64 billion in 2020, the United Nations Conference on Trade and Development (Unctad) said on Thursday.<\/p>\n
Despite the decline in FDI inflow, a flurry of new international project finance deals was announced in the country – 108 projects compared with 20 projects on average for the last 10 years, the agency said in its World Investment Report.<\/p>\n
The largest number of projects announced with foreign funding in India was in renewables at 23. Other large projects include construction of a steel and cement plant for $13.5 billion by ArcelorMittal Nippon Steel (Japan) and a new car manufacturing facility by Suzuki Motor (Japan) for $2.4 billion, it said.<\/p>\n
“FDI in China grew 21% and in Southeast Asia by 44%, but South Asia went the other way, falling 26% as flows to India shrank to $45 billion,” the agency said.
\nOutward FDI from South Asia, mainly from India, however, rose 43% to $16 billion.<\/p>\n
Global FDI flows recovered to pre-Covid levels in 2021, reaching nearly $1.6 trillion, the report said. However, this course is unlikely to be sustained in 2022, it added.<\/p>\n
The top 10 economies for FDI inflows in 2021 were the US, China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico. Among them, only India witnessed a decline in inflows. The US received FDI of $367 billion last year, followed by China at $181 billion and Hong Kong at $141 billion.<\/p>\n
Developing Asia, which received 40% of global FDI, saw flows rise in 2021 for the third straight year to an all-time high of $619 billion.<\/p>\n
China, Hong Kong, Singapore, India, the United Arab Emirates, and Indonesia accounted for more than 80% of FDI flows to Asia.<\/p>\n
SECTORAL PERFORMANCE<\/strong><\/p>\n International project finance announcements in industrial real estate grew in 2021 and deal numbers tripled to 152 projects with a value of $135 billion.<\/p>\n Of R&D investment in developing economies, India captured almost half of all projects, Unctad said.<\/p>\n American digital multinational enterprises targeted India in 8% of the deals, mostly buying minority stakes to gain access to the market, and to local innovative solutions, it said.<\/p>\n “For example, eBay (US) jointly with Microsoft (US) and Tencent (China), acquired undisclosed minority stake in Flipkart (India) for $1.4 billion in 2017,” Unctad said in the report.<\/p>\n Source: The Economic Times<\/p>\n","protected":false},"excerpt":{"rendered":" India gained one notch to emerge the seventh highest foreign direct investments (FDI) recipient in calendar 2021 despite inflows shrinking about 30% to $45 billion from $64 billion in 2020, the United Nations Conference on Trade and Development (Unctad) said on Thursday. Despite the decline in FDI inflow, a flurry of new international project finance […]<\/p>\n","protected":false},"author":16,"featured_media":98536,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[2460,127,5104,4417],"class_list":["post-98535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","tag-fdi","tag-india","tag-kuwaitnews","tag-timeskuwait"],"yoast_head":"\n