According to Indian media reports, the U.N. trade agency said foreign direct investment (FDI) flows to India fell by 26 percent in 2021, largely because there were no duplicates of large M&A deals recorded in 2020.
According to the Investment Trend Monitoring Report released by the United Nations Conference on Trade and Development (UNCTAD) on 19 January, global FDI showed a strong rebound in 2021.
Foreign direct investment grew from $929 billion in 2020 to $1.65 trillion, an estimated 77 percent increase, more than pre-COVID-19 levels.
UNCTAD Secretary-General Rebeca Grynspan said: "The recovery of investment flows to developing countries is encouraging, but the stagnation of new investment in LDCs in sectors of importance to productive capacities and key Sustainable Development Goals (SDGs) sectors, such as electricity, food or sanitation, is a major cause of concern".
"Flows to India decreased by 26 percent, largely because there were no duplicates of major M&A deals recorded in 2020," the report said.
According to UNCTAD's June 2021 World Investment Report, India received US$ 64 billion in FDI in 2020. Foreign direct investment in India increased by 27% from $51 billion in 2019 to $64 billion in 2020.
The report adds that this is due to acquisitions in the information and communication technology (ICT) industry. According to the 2021 report, the pandemic has boosted global demand for digital infrastructure and services. As a result, FDI projects for the ICT sector were even more valuable, increasing by more than 22% to $81 billion.
