India receives $64 bln FDI in 2020, fifth largest recipient of inflows in world: UN
India TV NewsIndia received USD 64 billion in Foreign Direct Investment in 2020, the fifth largest recipient of inflows in the world, according to a UN report which said the COVID-19 second wave in the country weighs heavily on the country's overall economic activities but its strong fundamentals provide “optimism” for the medium term. Announced greenfield projects in India contracted by 19 per cent to USD 24 billion, “and the second wave in April 2021 is affecting economic activities, which could lead to a larger contraction in 2021,” it said, adding that the outbreak in India severely hit main investment destinations such as Maharashtra, which is home to one of the biggest automotive manufacturing clusters and Karnataka, which face another lockdown as of April 2021, exposing the country to production disruption and investment delays. The report said FDI in South Asia rose by 20 per cent to USD 71 billion, driven mainly by strong M&As in India. “Amid India’s struggle to contain the COVID-19 outbreak, robust investment through acquisitions in ICT and construction bolstered FDI,” it said adding that cross-border M&As surged 83 per cent to USD 27 billion, with major deals involving ICT, health, infrastructure and energy.