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India 7th in FDI inflows: Unctad:

GS Paper 2:

Syllabus: Important International Institutions.

 

Context:

The United Nations Conference on Trade and Development’s (Unctad) has released the annual World Investment Report.

 

Highlights of the Report:

  1. India is ranked seventh despite a 30% decline in foreign direct investment (FDI) into the country.
  2. The United States ($367 billion) remained the top recipient of FDI.
  3. China ($181 billion) and Hong Kong ($141 billion) also retained second and third position respectively.
  4. Among the top 10 host economies, only India saw a decline in its inflows.
  5. However, outward FDI from India rose 43 per cent to $15.5 billion in 2021.

 

 

What is FDI?

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. With FDI, foreign companies are directly involved with day-to-day operations in the other country.

 

About United Nations Conference on Trade and Development (UNCTAD):

  • It is a permanent intergovernmental body established by the United NationsGeneral Assembly in 1964.
  • It is part of the UN Secretariat.
  • It reports to the UN General Assembly and the Economic and Social Council, but has its own membership, leadership, and budget.
  • It is also a part of the United Nations Development Group.

 

Objectives and roles:

  • It supports developing countries to access the benefits of a globalized economy more fairly and effectively. Along with other UN departments and agencies.
  • It also measures the progress made in the Sustainable Development Goals, as set out in Agenda 2030.

 

Reports published by UNCTAD are:

  1. Trade and Development Report
  2. World Investment Report
  3. Technology and Innovation Report
  4. Digital Economy Report

 

InstaLinks:

Prelims Link:

  1. About UNCTAD.
  2. Important reports by UNCTAD.
  3. Highlights of the annual World Investment Report 2022.

Mains Link:

Discuss the significance of FDI inflows for India.

 

Q. 2) The reports released by UNCTAD include:

  1. Trade and Development Report
  2. World Investment Report
  3. Technology and Innovation Report
  4. Digital Economy Report

Choose the correct answer using the codes given below:

  1. 1 and 2 only.
  2. 2 and 3 only.
  3. 3 and 4 only.
  4. All of the above.

Sources: Times of India.