- As per UNCTAD, even FDI inflows into India declined to $45 billion in 2021 from $64 billion in the preceding year. But still, it retains at 7th position. While the United States with $367 billion remained the top recipient of FDI, China with $181 billion and Hong Kong with $141 billion also retained second and third positions respectively.
- Among the top 10 host economies, only India saw a decline in its inflows. However, outward FDI from India rose 43% which amounts to $15.5 billion in 2021.
- It has been observed that in the recent past multinational enterprises of the US targeted India in 8% of deals, mostly buying minority stakes to gain access to the market and to local innovative solutions.
- The report also stated that global FDI flows recovered to pre-pandemic levels last year, growing 64% to $1.6 trillion but the prospects this year are weak as the business and investment climate has changed dramatically due to the war in Ukraine resulting in a triple crisis of high food and fuel prices and tighter financing.
- It has also been forecasted that the growth momentum cannot be sustained, still, global FDI flows in 2022 will likely move on a downward trajectory, and remains flat.
- As per the report, FDI flows to developing economies rose 30%to $837 billion the highest level ever recorded largely due to strength in Asia, a partial recovery in Latin America and the Caribbean, and an upswing in Africa.
Question:
Q.1 As per UNCTAD FDI inflows into India declined to _________ in 2021?a. $30 Billion
b. $45 Billion
c. $50 Billion
d. $35 Billion
