{"id":114285,"date":"2021-06-23T12:17:22","date_gmt":"2021-06-23T06:47:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114285"},"modified":"2021-06-23T12:17:22","modified_gmt":"2021-06-23T06:47:22","slug":"world-investment-report-2021-released","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/world-investment-report-2021-released\/","title":{"rendered":"World Investment Report 2021 released"},"content":{"rendered":"\n<p><b><span data-contrast=\"auto\">Context<\/span><\/b><span data-contrast=\"auto\">:\u00a0UN Conference on Trade and Development (UNCTAD)\u00a0has released its <a href=\"https:\/\/forumias.com\/blog\/world-investment-report\/\">World\u00a0Investment\u00a0report <\/a>2021<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Key\u00a0findings: &#8211;<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Specific to India<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">FDI\u00a0in 2020<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"173\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">India was 5<\/span><\/b><b><span data-contrast=\"auto\">th<\/span><\/b><b><span data-contrast=\"auto\">\u00a0biggest recipient<\/span><\/b><span data-contrast=\"auto\">:\u00a0India\u2019s FDI rose 27% to $64 billion in a year when\u00a0<\/span><b><span data-contrast=\"auto\">global investment flows shrank<\/span><\/b><span data-contrast=\"auto\">\u00a035% to $1 trillion. This peculiar phenomenon happened due to the following reason:<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"25\" data-aria-level=\"2\"><b><span data-contrast=\"auto\">Mergers and acquisitions (M&amp;A)<\/span><\/b><span data-contrast=\"auto\">, especially in the technology space\u00a0due to increased demand for digital products and services.\u00a0India saw huge investments from overseas\u00a0with major deals involving\u00a0ICT (Implementation of information and\u00a0Communication Technology), health,\u00a0infrastructure,\u00a0and energy.\u00a0Large transactions\u00a0included:\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"3\"><span data-contrast=\"auto\">the acquisition of Jio Platforms by\u00a0Jaadhu, a subsidiary of Facebook<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"3\"><span data-contrast=\"auto\">the acquisition of Tower Infrastructure Trust by Canada\u2019s Brookfield Infrastructure and\u00a0GIC\u00a0(Singapore)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"3\"><span data-contrast=\"auto\">the sale of the electrical and automation division of Larsen &amp; Toubro India<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"3\"><span data-contrast=\"auto\">Unilever India\u2019s merger with GlaxoSmithKline Consumer Healthcare India, a subsidiary of GSK United Kingdom)\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"174\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">India,\u00a0China\u00a0<\/span><\/b><span data-contrast=\"auto\">and<\/span><b><span data-contrast=\"auto\">\u00a0Hong Kong\u00a0<\/span><\/b><span data-contrast=\"auto\">were among the countries saw a rise in 2020.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"175\" data-aria-level=\"1\"><b><span data-contrast=\"none\">FDI outflows<\/span><\/b><span data-contrast=\"none\">\u00a0from South Asia fell 12% to USD 12 billion, due to a drop in investment from India.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"26\" data-aria-level=\"2\"><span data-contrast=\"none\">India ranked 18 out of the world\u2019s top 20 economies for FDI outflows, with 12 billion dollars of outflows recorded from the country in 2020 as compared to 13 billion dollars in 2019.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"176\" data-aria-level=\"1\">\n<h5><b><span data-contrast=\"auto\">Impact of COVID:<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"27\" data-aria-level=\"2\"><span data-contrast=\"auto\">Announced greenfield projects in India contracted by 19% to USD 24 billion, and the second wave in April 2021 is affecting economic activities, which could lead to a larger contraction in\u00a02021.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"28\" data-aria-level=\"2\"><span data-contrast=\"auto\">Outbreak in India severely hit main investment destinations such as Maharashtra, which is home to one of the biggest automotive manufacturing clusters (Mumbai\u2013Pune\u2013Nasik\u2013Aurangabad) and Karnataka (home to the Bengaluru tech hub)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"177\" data-aria-level=\"1\">\n<h5><b><span data-contrast=\"auto\">Prediction for 2021<\/span><\/b><span data-contrast=\"auto\">:\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"29\" data-aria-level=\"2\"><span data-contrast=\"auto\">Report suggests that investment in new ventures\u00a0in India\u00a0could be hit, but the production-linked incentive scheme and high-tech sectors could help drive growth.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"30\" data-aria-level=\"2\"><span data-contrast=\"auto\">FDI to India has been on a long-term growth trend and its market size will continue to attract market-seeking investments<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"76\" aria-setsize=\"-1\" data-aria-posinset=\"31\" data-aria-level=\"2\"><span data-contrast=\"auto\">Investments from India are expected to stabilize in 2021, supported by the country\u2019s resumption of free trade agreement (FTA) talks with the European Union (EU) and its strong investment in\u00a0Africa.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Note<\/span><\/b><b><span data-contrast=\"auto\">: Greenfield projects\u00a0<\/span><\/b><span data-contrast=\"auto\">are the projects\u00a0which are built from scratch and are not constrained by prior work. It is constructing on unused land where there is no need to remodel or demolish an existing structure. Some examples of greenfield projects are new factories, power plants or airports which are built from scratch. Those facilities which are\u00a0modified\/ upgraded are called\u00a0<\/span><b><span data-contrast=\"auto\">brownfield projects<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">Downward Trend in FDI\u00a0Global\u00a0Reasons\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"77\" aria-setsize=\"-1\" data-aria-posinset=\"178\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Slowdown in existing investment projects<\/span><\/b><span data-contrast=\"auto\">: Lockdowns caused by Covid-19 around the world slowed down existing investment projects, and prospects of a recession led multinational enterprises (MNEs) to reassess new projects.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"77\" aria-setsize=\"-1\" data-aria-posinset=\"179\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Boost in the demand of digital services<\/span><\/b><span data-contrast=\"auto\">: The pandemic boosted demand for digital infrastructure and services globally. This led to higher values of greenfield FDI project announcements targeting the ICT industry, rising by more than 22%<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"77\" aria-setsize=\"-1\" data-aria-posinset=\"180\" data-aria-level=\"1\"><span data-contrast=\"auto\">FDI inflows to developing Asia grew by 4% in 2020, making it the\u00a0<\/span><b><span data-contrast=\"auto\">only region to record growth\u00a0<\/span><\/b><span data-contrast=\"auto\">and increasing Asia\u2019s share of global inflows to 54%. In China, FDI increased by 6%.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"77\" aria-setsize=\"-1\" data-aria-posinset=\"181\" data-aria-level=\"1\"><span data-contrast=\"auto\">While some of the largest economies in developing Asia such as China and India recorded FDI growth in 2020, the<\/span><b><span data-contrast=\"auto\">\u00a0rest recorded a contraction.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"77\" aria-setsize=\"-1\" data-aria-posinset=\"182\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">FDI inflows in Asia are expected to increase<\/span><\/b><span data-contrast=\"auto\">\u00a0in 2021, outperforming other developing regions with a projected growth of 5\u201310%.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Terms to know<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"80\" aria-setsize=\"-1\" data-aria-posinset=\"183\" data-aria-level=\"1\"><span data-contrast=\"auto\"><a href=\"https:\/\/forumias.com\/blog\/what-is-fdi-or-foreign-direct-investment\/\">Foreign Direct Investment<\/a> (FDI)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Source 1<\/span><\/b><span data-contrast=\"none\">:\u00a0<\/span><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/mas-help-india-record-5th-highest-fdi-inflows\/articleshow\/83735340.cms\"><span data-contrast=\"none\">Times of India<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Source 2<\/span><\/b><span data-contrast=\"auto\">:\u00a0<\/span><a href=\"https:\/\/www.livemint.com\/opinion\/quick-edit\/indias-fdi-gush-11624298075402.html\"><span data-contrast=\"none\">Live mint<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Source 3<\/span><\/b><span data-contrast=\"auto\">:\u00a0<\/span><a href=\"https:\/\/www.hindustantimes.com\/business\/india-gets-64-bn-fdi-last-year-5th-largest-recipient-of-inflows-globally-un-101624256503585.html\"><span data-contrast=\"none\">Hindustan Times<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Source 4<\/span><\/b><span data-contrast=\"auto\">:\u00a0<\/span><a href=\"https:\/\/www.indiatoday.in\/business\/story\/india-receives-64-billion-fdi-in-2020-5th-largest-recipient-of-inflows-in-world-un-1817445-2021-06-21\"><span data-contrast=\"none\">India Today<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context:\u00a0UN Conference on Trade and Development (UNCTAD)\u00a0has released its World\u00a0Investment\u00a0report 2021\u00a0 Key\u00a0findings: &#8211;\u00a0 Specific to India\u00a0 FDI\u00a0in 2020\u00a0 India was 5th\u00a0biggest recipient:\u00a0India\u2019s FDI rose 27% to $64 billion in a year when\u00a0global investment flows shrank\u00a035% to $1 trillion. This peculiar phenomenon happened due to the following reason:\u00a0 Mergers and acquisitions (M&amp;A), especially in the technology&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/world-investment-report-2021-released\/\">Continue reading <span class=\"screen-reader-text\">World Investment Report 2021 released<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,8043,9],"tags":[8148,8149,4129],"class_list":["post-114285","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-current-affairs-cat","category-public","tag-fdi-in-india","tag-fdi-in-india-2020","tag-world-investment-report","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700531968},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114285"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114285\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}