FDI inflows into India are expected to register robust growth in 2026, supported by strong macroeconomic fundamentals, big-ticket investment announcements, sustained efforts to improve the ease of doing business, and a new generation of investment-linked trade pacts.
Net inflows were $18.4 billion for the rolling 12-month period ended January 2024 compared to $32.7 billion for the rolling 12-month period ended January 2023.
Foreign Direct Investment flows to India in 2021 were 26 per cent lower, mainly because large M&A deals recorded in 2020 were not repeated, the UN trade body has said.
Foreign Direct Investment into India rose by 13 per cent in 2020, boosted by interest in the digital sector, and while fund flows "declined most strongly" in major economies such as the UK, the US and Russia due to the Covid-19 pandemic, India and China "bucked the trend", the UN has said.
Position as most-favoured destination moves down a notch to fourth, says Unctad report.
The UN Conference on Trade and Development (UNCTAD) said in a report on Monday that a lower but positive economic growth in India in the post-Covid-19 pandemic period and India's large market will continue to attract market-seeking investments to the country. The World Investment Report 2020 by UNCTAD said that India was the 9th largest recipient of FDI in 2019, with 51 billion dollars of inflows during the year, an increase from the 42 billion dollars of FDI received in 2018, when India ranked 12 among the top 20 host economies in the world.
Foreign Direct Investment to Asia reached record heights in 2011, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2012.
India's global ranking as a destination for FDI has fallen from eight to 14.
The UN Conference on Trade and Development study -- World Investment Report 2010 -- ranks India as the 9th most attractive destination for foreign direct investment, up from 13th last year. It received $35 billion in FDI in 2009.
Foreign direct investment in India may erode sharply from the record $42 billion in 2008 with trans-national corporations going slow on expansion plans following the global financial meltdown, says an UNCTAD report.
India was fourth in 2008, in terms of FDI inflows, among developing countries, he said referring to UNCTAD World Investment Report (WIR) 2009.
The Maharashtra government has said the state is the most favourable investment destination in India, quoting the AT Kearney FDI Confidence Index Report.
In addition, the region may become more attractive to "efficiency-seeking" FDI, owing to the plans of several countries such as India and China, Indonesia and Vietnam to develop their infrastructure.
India is increasingly becoming an attractive destination for clinical research for pharma groups looking for faster and more efficient ways to test drugs for western countries
UNCTAD on Wednesday placed India among the top four Asian FDI destinations and said it will get more foreign investment flows as global economy rebounds this year.
FDI inflows into India were $34 billion in 2014, up 22%.
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