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:
- India is ranked seventh despite a 30% decline in foreign direct investment (FDI) into the country.
- The United States ($367 billion) remained the top recipient of FDI.
- China ($181 billion) and Hong Kong ($141 billion) also retained second and third position respectively.
- Among the top 10 host economies, only India saw a decline in its inflows.
- 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:
- Trade and Development Report
- World Investment Report
- Technology and Innovation Report
- Digital Economy Report
InstaLinks:
Prelims Link:
- About UNCTAD.
- Important reports by UNCTAD.
- 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:
- Trade and Development Report
- World Investment Report
- Technology and Innovation Report
- Digital Economy Report
Choose the correct answer using the codes given below:
- 1 and 2 only.
- 2 and 3 only.
- 3 and 4 only.
- All of the above.
Sources: Times of India.