GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: According to the United Nations Conference on Trade and Development (UNCTAD) report, India is among the countries that have witnessed a positive growth rate in FDI equity inflows in 2020 as compared to 2019.

Key highlights of the report:

• While major economies like the USA, Singapore, Germany, Brazil, Canada, UAE have seen a negative trend.
• Mauritius is the top investing country with 24 per cent equity inflows in April. It is followed by Singapore, which continues to be one of the top sources of FDI for India with 21 per cent inflows. Japan ranked third with 11 per cent of FDI inflows.

India’s specific:

• India has seen a growth of 25 per cent in 2020 as compared to 2019.
• India is 5th largest recipient of FDI inflow in the world in 2020. India’s FDI inflow increases 38% to $6.24 billion in April 2021.
• Total FDI comprises equity capital of unincorporated entities, re-investment earnings and other capital.
• As far as the states are concerned, Karnataka is the top recipient state with a 31 per cent share in the total FDI equity inflows during April 2021, followed by Maharashtra at 19 per cent and Delhi at 15 per cent.
• Computer software and hardware remain top sector for FDI, followed by 23 per cent in the service sector and 8 per cent in the education sector, respectively.

Government measures increase FDI

• Reforming the Foreign Direct Investment (FDI) policy
• measures taken on the front of investment facilitation and ease of doing business.

http://newsonair.com/2021/06/24/india-among-the-best-performers-in-attracting-fdi/

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