FDI flows to India slip 26% in 2021: UN report : Rashtra News #FDI #flows #India #slip #report Foreign Direct Investment (FDI) flows to India in 2021 were 26 per cent lower, mainly because large M&A deals recorded in 2020 were not repeated, the UN trade body has said. The UN Conference on Trade and
India s trade deficit narrows and services exports increase, prompting economists to lower the current account deficit (CAD) estimates for FY24. Capital inflows are expected to improve, but the rupee may not strengthen as the central bank aims to boost reserves. April-January period sees lower net services exports and improved FDI flows.
New Delhi is eager that more manufacturing companies choose India as a production hub, and has offered investment sweeteners. The wait is on for the trickle of FDI to turn into a flood. Marquee names, such as Tesla, are being courted.
Budget 2024: India seeks investments from global corporations to strengthen domestic capability in various sectors. The interim budget presents an opportunity to improve ease-of-doing business and attract higher investments. A plug and play model for manufacturing operations would be beneficial for global corporations. Tax certainty and effective contract enforcement are crucial for the economics of global supply chains.
“While inflows into the pandemic-period sectors such as computers and chemicals have slowed, investment intentions in futuristic sectors like renewables, data centres, EVs, green hydrogen, AI, and semiconductors, are rising sharply,” HSBC economists Pranjul Bhandari, Aayushi Chaudhary and Priya Mehrishi wrote in a January 11 note.