India fifth largest recipient of FDI in 2020
- Posted By
10Pointer
- Categories
Economy
- Published
24th Jun, 2021
-
Context
According to the World Investment Report 2021, India received USD 64 billion in Foreign Direct Investment in 2020 and become the fifth-largest recipient of inflows in the world.
About the key findings of the Report 2021
- The World Investment Report 2021, is released by the UN Conference on Trade and Development (UNCTAD).
- The global FDI flows have been severely hit by the pandemic.
- India: Concerning India, FDI increased 27 percent to USD 64 billion in 2020.
- This upward trend is caused by acquisitions in the information and communication technology (ICT) industry and construction.
- India’s Production Linkage Incentive scheme is also contributing towards this.
- Other nations: FDI inflows to developing Asia grew by 4 percent to USD 535 billion in 2020.
- In China, FDI increased by 6 percent to USD 149 billion.
Production Linkage Incentive scheme
- The scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
- PLI scheme offers incentives on incremental sales for products manufactured in India.
- Eligibility criteria for businesses under the PLI scheme vary based on the sector approved under the scheme.
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