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- According to UNCTAD’s World Investment Report 2019,Foreign Direct Investment (FDI) into India has increased by 6% to $42 billion in 2018.
- The sectors which received the strong inflows includes (a)manufacturing, (b)communication (c)financial services (d)cross-border merger and (e)acquisition activities.
- The report ranks India at 10th position amongst the top recipients of FDI in 2018.
- The report also says that FDI inflows has increased in South Asia by 3.5% to $54 billion.India attracted over 77% of the total foreign direct investments that came to the South Asian region
- However,the report says that the global FDI flows has fallen by 13% in 2018 to $1.3 trillion from $1.5 trillion in 2017.It is the third consecutive annual decline.
- The contraction was largely due to US multinational enterprises(MNEs) withdrawing earnings from abroad making use of tax reforms introduced by the US government in 2017.
- The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body.
- UNCTAD is the part of the United Nations Secretariat dealing with trade, investment and development issues.
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