The World Investment Report 2022 was released by the United Nations Conference on Trade and Development (UNCTAD).
As per the report, India jumped one position to 7th rank among the top recipients of Foreign Direct Investment (FDI) in the last calendar year (2021) despite FDI inflows into the country declining.
FDI inflows into India declined to $45 billion in 2021 from $64 billion in the preceding year. However, outward FDI from India rose 43% to $15.5 billion in 2021. Among the economies, only India saw a decline in its inflows.
The multinational enterprises of the United States targeted India in 8% of deals, mostly buying minority stakes to gain access to the market and to local innovative solutions.
As per the report, the United States ($367 billion) remained the top recipient of FDI. The USA is being followed by China ($181 billion) and Hong Kong ($141 billion) for the second and third positions respectively.
In India, the largest number of projects (23) was in the renewables sector. Large projects include the construction in India of a steel and cement plant for $13.5 billion by ArcelorMittal--Nippon Steel (Japan) and the construction of a new car manufacturing facility by Suzuki Motor (Japan) for $2.4 billion.
Foreign direct investment (FDI) is an investment made by a company or an individual in one country into business interests located in another country.