FDI inflow ranking: India rises to 7th spot

 

According to the united nations conference on trade and development ( UNCTAD), India jumped one position to 7th in the top recipients of FDI inflows in the country, with $45 billion in 2021 compared to $64 billion in the preceding year. while the United States are at the top with $367 billion, China ($181 million) and Hing Long ($141 billion) retained second and third positions. FDI outflows rose 43 per cent to 15.5 billion in 2021. Though the inflows were declined, a large number of international projects were announced, with 23 in renewables, steel and cement plant ($13.5 billion) by ArcelorMittal -- Nippon steel and a new car manufacturing facility by Suzuki motor ( $2.4 billion). Though the prospects of this year are grim as the economy is recovering from a pandemic, there has been a growth of 64 per cent to $1.6 trillion. The business and investment climate has changed due to the war in Ukraine which caused a triple crisis of high food and fuel prices and tightened finances. An increasing interest rate rise in major economies, negative sentiment in financial markets and a potential recession. 

        High profits and investments by MNCs in new overseas project were still below pre pandemic levels for developing countries, the value of Greenfield announcements also stayed flat.

The growth momentum cannot be sustained and global inflow in 2022 will likely move downward, though inflows remains stable in value terms, the uncertainty of investors is going to affect the project activity. Record profits and increase in FDI to 134 percent has benefitted all regions, about the fourth of it is concentrated in developed economies, while flow to developing countries rose  30 percent to $887 billion, highest ever largely in Asia, Latin America Caribbean and upswing in Africa. The global inflow of developing countries remained just above 50 per cent. UNCTAD said MNCs of United States targets India in 8 per cent of the deal by minority stakes  gain access to local market innovative solutions.