India’s stand on foreign direct investment (FDI)

India’s stand on foreign direct investment

Team Ambitiousbaba are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “India’s stand on foreign direct investment (FDI)

India arrived at one notch to come out the seventh highest foreign direct investments (FDI) recipient in calendar 2021 despite reducing inflows about 30% to $45 billion from $64 billion in 2020 as per the United Nations Conference on Trade and Development (UNCTAD).

Despite the decline in FDI inflow, a flurry of new international project finance deals was announced in the country.

Sectoral FDI stance:

The largest number of projects declared with foreign funding in India was in renewable sector at 23. Other large projects consists construction of steel and cement plant for $13.5 billion by ArcelorMittal Nippon Steel (Japan) and a new car manufacturing facility by Suzuki Motor (Japan) for $2.4 billion.

FDI flows in other countries:

FDI inflows in China increased by 21% and in Southeast Asia by 44%. While South Asia went the other way with falling by 26% as inflows to India contracted to $45 billion.

Outward FDI from South Asia, mainly from India increased to 43% to $16 billion.

Global FDI flows retrieved to pre-Covid levels in 2021, reaching nearly $1.6 trillion. However it is predicted that this scenario might not be continued in 2022.

Top 10 FDI inflows:

The top 10 economies for FDI inflows in 2021 have been recorded as the US, China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico.

Rank Country Rank Country
1 USA 6 Brazil
2 China 7 India
3 Hong Kong 8 South Africa
4 Singapore 9 Russia
5 Canada 10 Mexico


In these top 10 economies only India showed a decline in inflows. The US got FDI of $367 billion last year, followed by China at $181 billion and Hong Kong at $141 billion.

FDI in Asian region:

If we talk about developing Asia, it has got 40% of global FDI flows which increase in 2021 for the third straight year to an all-time high of $619 billion.

China, Hong Kong, Singapore, India, the United Arab Emirates, and Indonesia reported for more than 80% of FDI flows to Asia.


Question & Answer:

Q1. Which institute/organization has released the report on foreign direct investment rankings?

Ans. United Nations Conference on Trade and Development

Q2. Which country ranked first as per FDI inflows in the year 2021?

Ans. USA

Q3. What is the rank of India as per the UNCTAD’s FDI inflows ranking 2021?

Ans. 7th


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