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Reuter Reports India As The Third Largest Recipient Of FDI In 2020

    1 May , 2021         Fdiindia

Reuter Reports India As The Third Largest Recipient Of FDI In 2020

Even as global FDI flows dipped to a 15-year low last year, news agency Reuters announced on April 30 that China, the United States, India, and Luxembourg were the countries drawing the most foreign direct investment in pandemic-hit 2020. This data is confirmed by Organization for Economic Co-Operation and Development (OECD).

Global FDI flows fell 38% in 2020 to $846 billion, the lowest amount since 2005. All this struck as the coronavirus wreaked havoc on the global economy, according to Reuters.

According to a Reuters survey, China has surpassed the United States as the most popular destination for foreign investment, despite the fact that major portions of the world's largest economy have been shut down owing to the pandemic.

According to the survey, the top destinations for inflows are India and Luxembourg, where several shell corporations are legally listed.

According to the news article, this was just 1% reflection of the global GDP, an amount not seen since 1999.

According to Reuters, a turnaround in cross-border mergers and acquisitions activity in late 2020 and early this year may drive a rebound in FDI in 2021.

According to the United Nations Conference on Trade and Growth, India's FDI inflows are expected to increase by 13% to $57 billion in calendar year 2020, boosted primarily by investments in the digital economy and start-ups.