India among top FDI recipients

India was among the top 10 recipients of foreign direct investment (FDI) in 2019, attracting $49 billion in inflows, a 16 per cent increase from the previous year, driving the FDI growth in South Asia, according to a UN report released on Monday.

The Global Investment Trend Monitor report compiled by United Nations Conference on Trade and Development (UNCTAD) states that the global FDI remained flat in 2019 at $1.39 trillion, a 1 per cent decline from a revised $1.41 trillion in 2018.

This is against the backdrop of weaker macroeconomic performance and policy uncertainty for investors, including trade tensions, it said.

Developing economies continue to absorb more than half of global FDI flows. South Asia recorded a 10 per cent increase in FDI to $60 billion and “this growth was driven by India, with a 16 per cent increase in inflows to an estimated $49 billion. The majority went into services industries, including information technology,” the report said.

India had attracted FDI of $42 billion in 2018.

The FDI flows to developed countries remained at a historically low level, down 6 per cent to an estimated $643 billion.

The FDI to the EU fell by 15 per cent to $305 billion, while there was flat growth in flows to the US, which received $251 billion in 2019 verus $254 billion in 2018. Still, the US remained the largest recipient of FDI, followed by China ($140 billion.) —PTI