India’s FDI gush

1 min read . Updated: 21 Jun 2021, 11:27 PM IST Livemint

What helped keep money moving across borders were acquisitions in the information and communication technology (ICT) space, driven by demand for all things digital

India has fared reasonably well in attracting foreign direct investment (FDI) during a pandemic. According to the World Investment Report 2021 of the UN Conference on Trade and Development, our FDI total climbed 27% to $64 billion in 2020. The country was the world’s fifth-largest recipient.

This is especially impressive in a year when global FDI flows slumped by more than a third, to $1 trillion. What helped keep money moving across borders were acquisitions in the information and communication technology (ICT) space, driven by demand for all things digital. India saw huge investments from overseas in Reliance’s Jio Platforms, as the ICT-pivoting business forged partnerships with some of the world’s most cash-rich tech companies. These mega-deals reflected optimism in India’s digital future as much as a fast-shifting competitive landscape. Other sectors attracted inflows too, and while some of these investment decisions were likely pre-covid, one can still conclude that the impact of coronavirus on our economy did not deter foreign investors. Whether we can keep up this allure, though, may depend on how we emerge from our current crisis.