The United Nations Conference on Trade and Development (UNCTAD) has released the World Investment Report 2021 which has revealed that Foreign Direct Investment (FDI) in India has increased 27 per cent to USD 64 billion in 2020 from USD 51 billion in 2019. It has placed the country at the fifth largest FDI recipient in the world.
As per the report, while FDI flows have been severely hit by the pandemic and they plunged by 35 per cent in 2020 to USD 1 trillion from USD 1.5 trillion the previous year. The pandemic boosted demand for digital infrastructure and services globally has led to higher values of Greenfield FDI project announcements targeting the information and communication technology (ICT) industry, rising by more than 22 per cent to USD 81 billion.
Further, announced greenfield projects in India has contracted by 19 per cent to USD 24 billion, and the second wave in April 2021 is affecting economic activities, which could lead to a larger contraction in 2021.