In contrast to the global trend, foreign direct investment (FDI) in India increased by 13 per cent during 2020.
In the midst of the corona virus epidemic, worldwide foreign direct investment (FDI) has decreased. Globally, it has fallen by 42 per cent. But in contrast FDI in India has increased by 13%.
- January 25, 2021, 8:54 AM IST
During 2020, this record decline in FDI was seen most in developed countries. The total FDI in these countries has come down by about 69 percent to $ 229 billion. FDI investment was also seen in the negative circle in many countries around the world including Europe. In the US, it declined 49 percent to $ 134 billion. Whereas, total FDI in India increased by 13 per cent during 2020. The report said that this boom was witnessed due to investment in the digital sector.
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Highest foreign direct investment came in chinaDeveloping nations saw a 12 per cent drop in FDI and stood at $ 616 billion. The share of developing economies in global FDI has reached 72 percent. This is the highest record ever. Among the countries receiving the highest FDI, China managed to be the first place.
East Asia share reaches one third
The decline in FDI in developing regions has not been uniform. In Latin America and the Caribbean region it has fallen by 37 per cent, while it has fallen by 18 per cent in African countries and 4 per cent in Asian countries. The share of East Asia in global FDI 2020 has increased to one third.
Weak FDI estimates in 2021 too
It has also been estimated in this report that in 2021, only weakness in FDI will be seen. The report said, ‘The data giving information about the trends ahead is showing a mixed picture and there will be constant pressure on the decline in it. Less announcements about greenfield projects show that no major changes are going to happen in the industrial sector.
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What causes FDI to be affected in 2021?
The risks associated with recent cases of the corona virus epidemic, the pace of vaccination rollout programs, the economic relief package, the economic situation of most emerging markets and global policies on investment will affect FDI in 2021.