UNCTAD has warned that the impact of the coronavirus pandemic, lockdown measures, supply chain disruptions, and economic slowdown may hamper India’s ability to attract foreign investments in 2020.
Foreign direct investment (FDI) inflows into India may fall steeply in 2020 even as the Narendra Modi government has steps up efforts to attract more foreign investments to give a fillip to business opportunities and employment in the country. The United Nations Conference on Trade and Development (UNCTAD) has warned that the impact of the coronavirus pandemic, lockdown measures, supply chain disruptions, and economic slowdown may hamper India’s ability to attract foreign investments in the current year. The steep fall in India’s foreign investment inflows may occur despite the country seeing FDI inflows of $51 billion in 2019, which was a rise of 20 per cent on-year.
Among the nations receiving maximum FDI inflows, India improved its position from 12th in 2018 to 9th in 2019, according to the latest World Investment Report 2020 by UNCTAD. However, between January and March 2020, the number of greenfield investment announcements fell by 4 per cent and M&As shrank by 58 per cent, the report added.
Source: Financial Express
