India has moved up a notch to become the seventh largest recipient of foreign direct investment (FDI) in calendar year 2021, even as inflows contracted by around 30% to 45 billion. dollars compared to $64 billion in 2020, the United Nations Conference on Trade and Development said. (Unctad) Thursday with.
Despite the decline in FDI inflows, a number of new international financing projects have been announced in the country: 108 projects against an average of 20 projects over the past 10 years, according to the agency in its World Investment Report.
The largest number of foreign-funded projects announced in India were for renewable energy, with 23. Other major projects include the construction of a $13.5 billion steel and cement plant by ArcelorMittal Nippon Steel (Japan). ) and a new car plant by Suzuki Motor (Japan). for $2.4 billion, he said.
“FDI into China rose 21% and Southeast Asia rose 44%, but South Asia did the opposite, falling 26% as inflows to India soared. contracted at $45 billion," the agency said. .
However, FDI from South Asia, mainly India, increased by 43% to $16 billion.
Global FDI flows returned to pre-Covid levels in 2021, reaching nearly $1.6 trillion, according to the report. However, this course will probably not continue in 2022.
The top 10 economies in terms of FDI inflows in 2021 were the United States, China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico. Among them, only India recorded a decline in revenue. The United States received $367 billion in FDI last year, followed by China with $181 billion and Hong Kong with $141 billion.
Developing countries in Asia, which receive 40% of global FDI, saw their flows reach a record level of $619 billion in 2021 for the third consecutive year.
China, Hong Kong, Singapore, India, United Arab Emirates and Indonesia accounted for more than 80% of FDI flows to Asia.
Announcements of financing for international industrial real estate projects increased in 2021, with the number of transactions tripling to 152 projects valued at US$135 billion.
Among R&D investments in developing countries, India accounted for almost half of all projects, UNCTAD said.
US digital multinationals are targeting India for 8% of deals, mostly buying minority stakes to gain market access and local innovative solutions, he said.
"Por example, in 2017, eBay (EE. UU.) together with Microsoft (EE. UU.) y Tencent (China) acquired a minority participation no revealed in Flipkart (India) for 1.400 million dollars", dijo la Unctad en The report.
Also Read: Tea exporters anticipate 225 million kg shipments in 2022, underpinned by strong demand