16% rise in FDI inflows into India in 2019 to reach $49 billion, says UN body making India one of the top 10 recipients of FDI in the world
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Home News India

16% rise in FDI inflows into India in 2019 to reach $49 billion, says UN body making India one of the top 10 recipients of FDI in the world

by Janam Web Desk
Jan 21, 2020, 08:55 pm IST
in India

New Delhi: The United Nations Conference on Trade and Development (UNCTAD) in its Global Investment Trend Monitor report said that there was a $49 billion Foreign Direct Investment (FDI) into the country in 2019. This is a 16% rise in FDI compared to the previous year. India is now one of the top ten recipients of FDI in the world.

The report said that India drove the FDI growth in South Asia and the majority of the inflow went into services industries like Information Technology.

The report said, “South Asia recorded a 10% increase in FDI to $60 billion. The growth was driven by India, with a 16% increase in inflows to an estimated $49 billion. The majority went into services industries, including information technology.”

However, the global scenario of FDI was bleak in 2019, which was $1.3 trillion, a 1% decline from the previous year.

India’s neighbours Pakistan and Bangladesh also recorded negative growth in FDI in the current year.

Surprisingly, China, the second largest recipient of FDI inflows, witnessed zero growth.

The UNCTAD had a positive outlook in the coming year and expects the FDI inflows to rise in 2020 moderately. GDP growth, trade and gross fixed capital formation are projected to grow on a global level raising hopes for better FDI inflows.

The UN’s report on FDI flows into India must be seen in the backdrop of global slowdown. Besides, the report shows that India economy is not bleak as being projected by many political and economic experts.

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