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FDI in India grows 13 per cent in 2020, bucking global decline of 42 per cent

The decline in FDI inflows was concentrated in developed countries, where fund flows fell by 69 per cent to an estimated $229 billion. 

Published: 26th January 2021 04:11 AM  |   Last Updated: 26th January 2021 10:50 AM   |  A+A-

Dollar notes, FDI

For representational purposes (File photo| Reuters)

By Express News Service

NEW DELHI: Bolstered by acquisitions in India’s digital economy, foreign direct investment (FDI) into India rose13 per cent in 2020, while global FDI collapsed 42 per cent, said the United Nations Conference on Trade and Development (UNCTAD) in its report “Investment Trends Monitor”. The decline in FDI inflows was concentrated in developed countries, where fund flows fell by 69 per cent to an estimated $229 billion. 

“In relative terms, FDI flows declined most strongly in the UK, Italy, Russia, Germany, Brazil and the US due to the dramatic impact of COVID-19. India and China, however, bucked the trend,” the report noted. Such a low level was last seen in the 1990s and is more than 30 per cent below the investment trough that followed the 2008-2009 global financial crisis.

India, however, saw a 13 per cent rise in FDI saw the total foreign investments for 2020 touching $57 billion. China was the world’s largest FDI recipient, with flows to the Asian giant rising by four per cent to $163 billion.

“India, another major emerging economy, also recorded positive growth (13 per cent), boosted by investments in the digital sector,” the report said.Cross-border merger and acquisition (M&A) sales grew 83 percent to $27 billion, the report said, citing social networking giant Facebook’s acquisition of 9.9 percent stake in Reliance Jio platforms, via a new entity, Jaadhu Holdings LLC. Similarly deals in the 
energy sector propped up M&A values in India, it added.



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