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FDI in India increased by 27% in 2020 despite Covid

Jun 23, 2021
FDI in India increased by 27% in 2020 despite Covid


As per UNCTAD World Investment Report, 2021, FDI flows in 2020 to developing Asian countries increased by 4% and reached $535 billion while the global FDI dropped by 35% and has reached $1 trillion. As per the World Investment Report 2021 of the United Nations Conference on Trade and Development (UNCTAD), developing Asian countries like Hong Kong, China, India, and UAE have registered growth in FDI flows in pandemic hit 2021 defying the global trend. According to James Zhan, Director, UNCTAD, only developing Asia has recorded FDI growth, accounting for more than half of the global outwards and inwards FDI flows. He also added that FDI prospects in 2021 for Asia are favourable than the global average.

FDI in India has increased by 27% in 2020 and has reached $64 billion. As per the report, there has been robust investment in India’s Information and Communications Technology and construction sector due to which India’s FDI inflows have increased.  With major deals in health, infrastructure, ICT, and energy, India’s cross-border M&As have surged 83%.

The outward flow from Asia increased by 7% and has reached $389 billion. This is the only region that has recorded expansions in outflows. This growth was driven by investment from Hong Kong, China, and Thailand.

According to the report, FDI prospects for the region are more favourable than the global outlook and might lead to a growth of 5-10%. India plays a big role in Asia bucking global trend.

Source – Business Today

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