India and Asean top recipients of FDI, says UNCTAD report

Source: The post is based on the article “India and Asean top recipients of FDI, says UNCTAD report” published in Economic Times on 6th July 2023

What is the News?

The United Nations Conference on Trade and Development (UNCTAD) has published its World Investment Report 2023.

What are the key findings of the World Investment Report 2023?

Globally: The global FDI fell by 12% in 2022 to $1.3 trillion mainly due to overlapping global crises: the war in Ukraine, high food and energy prices, and soaring public debt.

– The decline was felt mostly in developed economies where FDI fell by 37% to $378 billion.But flows to developing countries grew by 4% with a few large emerging countries attracting most of the investment while flows to the least developed countries declined.

– Investments in renewables have nearly tripled since 2015.But most of the money has gone to developed countries.

– Developing countries need renewable energy investments of about $1.7 trillion each year but attracted only $544 billion in clean energy FDI in 2022.

India: India was the third largest recipient of foreign direct investment (FDI) in greenfield projects in the world in 2022.

– The FDI flows into India rose 10 percent from $44.7 billion in 2021 to $49.3 billion in 2022.

– However, the total FDI inflows to India in 2022 was still lower than what was recorded in 2020, when India received $64 billion of foreign investments.

– India was also the second-largest recipient of international project finance in the world in 2022. International project finance is when international lenders provide debt or equity to infrastructure projects in various countries.

– Moreover, Indian multinational companies substantially increased their overseas investments in 2022.Indian companies’ invested about $42 billion overseas, a three-fold increase in total investments.