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Recently, the United Nations Conference on Trade and Development (UNCTAD) published its World Investment Report 2023.

Key Findings of the World Investment Report 2023:

About India:

• India was the third largest recipient of foreign direct investment (FDI) in greenfield projects in the world in 2022.
• The FDI flows into India rose 10 percent from $44.7 billion in 2021 to $49.3 billion in 2022. This is lower only than the FDI flows into the US and the UK.
• India was the second-largest recipient of international project finance in the world in 2022.
• The inflows into India in 2022 were, however, significantly lower than what was seen in 2020 during the Covid-19 pandemic.

Global Trends:

• Top 5 Destinations for investment in Greenfield Projects: United States, United Kingdom, India, the United Arab Emirates and Germany 
• Top 5 Destinations for Project Finance Deals: USA, India, the United Kingdom, Spain and Brazil
• Widening Annual Investment Deficit: Developing countries face an annual gap of about $4 trillion per year as they work to achieve the Sustainable Development Goals (SDGs) by 2030. It is up from $2.5 trillion in 2015 when the SDGs were adopted.
• Investments in Renewables: 
  • Developing countries need renewable energy investments of about $1.7 trillion each year but attracted only $544 billion in clean energy FDI in 2022.
  • Although investments in renewables have nearly tripled since 2015, most of the money has gone to developed countries.
• India and ASEAN were the most buoyant recipients, with increases of 10 and 5 per cent, respectively, and strong growth in project announcements.
• China, the second largest FDI host country in the world, saw a 5% increase in FDI.

News Source: the print