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As per UNCTAD report, Foreign Direct Investment (FDI) flows to India fell by what percent in 2021?
  • 23percent
  • 24 percent
  • 25 percent
  • 26 percent
Answer- D
1) According to the UN Conference on Trade and Development (UNCTAD) Investment Trends Monitor, there was a 26 percent decrease in Foreign Direct Investment (FDI) flows to India in 2021 as compared to 2020. The report states that FDI to India was recorded at USD 64 billion in 2020, which was 27 percent higher than the USD 51 billion recorded in 2019.

2)As per the UN Conference on Trade and Development (UNCTAD), the primary reason for the low Foreign Direct Investment (FDI) in India was the absence of significant cross-border mergers and acquisitions (M&A) deals that were recorded in 2020. However, these deals were not repeated in 2021. On the global front, FDI flows increased by 77 percent to an estimated USD 1.65 trillion in 2021, as compared to USD 929 billion recorded in 2020.