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India fifth largest recipient of FDI in 2020

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    24th Jun, 2021

According to the World Investment Report 2021, India received USD 64 billion in Foreign Direct Investment in 2020 and become the fifth-largest recipient of inflows in the world.

Context

According to the World Investment Report 2021, India received USD 64 billion in Foreign Direct Investment in 2020 and become the fifth-largest recipient of inflows in the world.

About the key findings of the Report 2021

  • The World Investment Report 2021, is released by the UN Conference on Trade and Development (UNCTAD).
  • The global FDI flows have been severely hit by the pandemic.
  • India: Concerning India, FDI increased 27 percent to USD 64 billion in 2020.
    • This upward trend is caused by acquisitions in the information and communication technology (ICT) industry and construction.
    • India’s Production Linkage Incentive scheme is also contributing towards this.
  • Other nations: FDI inflows to developing Asia grew by 4 percent to USD 535 billion in 2020.
    • In China, FDI increased by 6 percent to USD 149 billion.

Production Linkage Incentive scheme

  • The scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
  • PLI scheme offers incentives on incremental sales for products manufactured in India.
  • Eligibility criteria for businesses under the PLI scheme vary based on the sector approved under the scheme.

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