Economy News

Foreign inflows boosted by 13% in India for 2020 amid pandemic

There’s an interesting information to read that the FDI or Foreign Direct Investments rose in India by 13 percent in 2020. This all happened by the boost in the digital sector.

This change can be even concluded as the result of decline in major economies like US and UK.

The fund inflows depreciated on very stronger grounds in these countries due to the global pandemic COVID-19. The UN has said that amid pandemic, India and China combined, bucked the trend.

The global foreign direct has slumped by 42 percent in 2020. The estimated FDI was reckoned at $850 billion which has strongly declined from $1.5 trillion in 2019.

These numbers are reported by an ‘investment trends monitor’ which is issued by the United Nations Conference on Trade and Development (UNCTAD).

This knee-high or shallow level was earlier seen in the 1990s. And this is even beyond that 30 percent below the investment that occurred in the global financial crisis of 2008-2009.

However, this increased FDI is the result of boost in investment in the digital sector in India. As compared to China, India has also recorded a positive growth by 13 percent.

The total foreign investment has been estimated to be $57 billion as per 2020.

Major reports are claiming this upliftment to be the result of acquisitions in India’s digital economy citing it to be a major contributor in this FDI rise.

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