India among top 10 global economies for FDI in 2021 despite decline in investment to $45 bn: UN
India had achieved foreign direct investment of $ 64 billion in 2020. Among the new agreements India has signed for 108 projects, the maximum number of agreements were in the renewable energy sector (Photo: iStock)
The United Nations on Thursday said foreign direct investment (FDI) in India declined by $19 billion to $45 billion in 2021. However, despite this, the country remains in the top 10 global economies in terms of FDI.
According to the World Investment Report of the United Nations Conference on Trade and Development (UNCTAD), FDI globally last year improved to pre-pandemic levels and stood at around $1,600 billion.
However, this year the prospects on FDI are not good. Foreign direct investment in 2022 and beyond will be affected by the security and humanitarian crisis caused by the Russo-Ukraine war, macroeconomic shocks, rising energy and food prices, and investor uncertainty.
According to the report, India had achieved foreign direct investment of $ 64 billion in 2020. This came down to $45 billion in 2021. But despite this, India is among the 10 major countries in terms of FDI. India is ranked seventh after the US, China, Hong Kong, Singapore, Canada and Brazil. South Africa, Russia and Mexico are also among the top 10 countries in terms of getting FDI.
“FDI inflows may have come down to $45 billion, but there have been several deals on new international project finance,” it said. Under this, agreements were signed for 108 projects, whereas in the last 10 years its number was on an average 20. The maximum number of agreements were signed for 23 projects in the renewable energy sector.
Major projects include ArcelorMittal Nippon Steel setting up a steel and cement factory in India with an investment of $13.5 billion and Suzuki Motor building a new car manufacturing plant with an investment of $2.4 billion.
Whereas, FDI in South Asia, mainly from India, grew 43 per cent to $16 billion.
According to the report, the Ukraine war will have far-reaching implications in terms of economic growth and international investment towards the Sustainable Development Goals (SDGs) in all countries. This situation has arisen at a time when the world was recovering from the effects of the Corona pandemic.