India, China buck global FDI trend: UNCTAD report

Tribune News Service

New Delhi, January 25

The UN has noted that India and China have largely bucked the worldwide trend of falling foreign direct investment (FDI) during the pandemic period. India, a major emerging economy, recorded positive growth of 13% in FDI, boosted by investments in the digital sector, according to the UNCTAD Investment Trends Monitor.

Overall, global FDI collapsed in 2020, falling 42% from $1.5 trillion in 2019 to an estimated $859 billion.

Global monitor

• India recorded 13% growth in FDI, boosted by investments in the digital sector, according to the UNCTAD Investment Trends Monitor
• Overall, global FDI collapsed in 2020, falling 42% from $1.5 trillion in 2019 to an estimated $859 billion

However, China was the world’s largest FDI recipient, with flows rising by 4% to $163 billion due to increased activity in high-tech industries, cross-border mergers and acquisitions, mostly in ICT and pharma.

India and Turkey are attracting record number of deals in IT consulting and digital sectors, including e-commerce platforms, data processing services and digital payments.

Some 80% of the acquiring firms are based in developed economies, primarily in Europe, but a few multinational enterprises from developing countries are also active buyers.