India Ranks 10th in FDI Inflows According to UNCTAD Report [ Current Affairs ]

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India is ranked at 10th spot in FDI (Foreign Direct Investment) inflows as per the recently released 2016 World Investment Report with increased FDI inflows to 44 billion dollars in 2015 as compared to 35 billion dollars in 2014.

Key highlights of the report

  • Top 10 Countries are:
  1. United States with 380 billion dollars FDI inflows
  2. Hong Kong
  3. China
  4. Ireland
  5. Netherlands
  6. Switzerland
  7. Singapore
  8. Brazil
  9. Canada
  10. India
  • China was ranked third in 2015 with FDI inflows at 136 billion dollars (more than three times India’s FDI).
  • The FDI activity has improved by 38%, signaling stimulation in investment opinions is on the cards globally.
  • There has been deterioration in most developing and transition regions in terms of FDI outflows.
  • China is one of the exclusions still in this case.
  • Remarkable the correct balance between instruction and liberalization to encourage speculation for sustainable development is also highlighted.
  • Liberalization processes have been functional by disregarding or relaxing entry necessities in financial services, aviation, mining and real estate.
  • Margins, on the other hand, have been forced on the national security and related reasons.

About FDI

  • A foreign direct investment (FDI) is a regulatory ownership in a business initiative in one country by an entity based in another country.
  • FDI is the investment which may be made moreover “inorganically” by buying a company in the target country or “organically” by expanding operations of an existing business in that country.

About UNCTAD

  • The United Nations Conference on Trade and Development (UNCTAD) was founded in 1964 as a lasting intergovernmental body.
  • UNCTAD is the key structure of the United Nations General Assembly which is dealing with trade, investment, and development issues.
  • The main goals of organization are: “maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis. ”

- Published on: June 23, 2016