India among top 10 countries to attract foreign investment

United Nations: India attracted $64 billion in foreign investment in 2020. But in 2021, there was a decline of $19 billion and the foreign investment in the country came down to $45 billion. It was being claimed to be a cause of concern in the economy. But despite the fall in foreign investment, India continued to be in the top 10 countries attracting foreign investment. This information has been given by the Trade and Development department of the United Nations.

‘World Investment Report’ published by the Trade and Development department of the United Nations gives the details of country-wise foreign investments. India comes after the United States, China, Hongkong, Singapore, Canada and Brazil. Moreover, India announced nearly 108 significant projects in the year 2021. 23 of these are connected to the renewable energy sector. There used to be an announcement of about 20 major projects in the preceding ten years. The World Investment Report notes that India attracted the attention of international investors with the announcement of 108 major projects.

Nippon Steel Company from Japan has announced an investment of $13.3 billion for new projects in the steel and cement sector. Suzuki motors, again a Japanese company, announced an investment of $2.4 for a vehicle manufacturing facility in India. Both these projects have been cited in the World Investment report. The report also takes note of the efforts initiated by India to attract foreign investments. India has started a national single window system to avoid hardships for foreign investors. The investment process has become easier with this and as claimed by the report, India is reaping the initiative’s benefits.

The World Investment Report points out that the situation created by the Russia-Ukraine conflict can affect the investment flow into India. India has initiated moves to counter these challenges. India is strengthening its economy with free trade agreements signed with Australia and the United Arab Emirates. Negotiations with Great Britain and the European Union also are underway for free trade agreements. Minister of Commerce Piyush Goyal had recently said that the free trade agreement with Great Britain would be finalised by November this year.