India 7th in FDI Inflows: UNCTAD

Syllabus: General Studies Paper 3

The United Nations Conference on Trade and Development’s (Unctad) has released the annual World Investment Report.

 Highlights of the Report: India 7th in FDI Inflows: UNCTAD

• India is ranked seventh despite a 30% decline in foreign direct investment (FDI) into the country.
• The United States ($367 billion) remained the top recipient of FDI.
• China ($181 billion) and Hong Kong ($141 billion) also retained second and third position respectively.
• Among the top 10 host economies, only India saw a decline in its inflows.
• However, outward FDI from India rose 43 per cent to $15.5 billion in 2021.

What is FDI?

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. With FDI, foreign companies are directly involved with day-to-day operations in the other country.

About United Nations Conference on Trade and Development (UNCTAD):

• It is a permanent intergovernmental body established by the United Nations General Assembly in 1964.
• It is part of the UN Secretariat.
• It reports to the UN General Assembly and the Economic and Social Council, but has its own membership, leadership, and budget.
• It is also a part of the United Nations Development Group.

 Objectives and roles:

• It supports developing countries to access the benefits of a globalized economy more fairly and effectively. Along with other UN departments and agencies.
• It also measures the progress made in the Sustainable Development Goals, as set out in Agenda 2030.

 Reports published by UNCTAD

1. Trade and Development Report
2. World Investment Report
3. Technology and Innovation Report
4. Digital Economy Report