CONTEXT:

• According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2019, India received foreign direct investments (FDI) worth USD 42 billion in 2018.
• India attracted over 77% of the total foreign direct investments that came to the South Asian region.

BACKGROUND:

• The global FDI slipped by 13% in 2018, to US$1.3 trillion from $1.5 trillion in 2017, the third consecutive annual decline.
• India’s rank as a source country for FDI dropped one place to the 10th position as it was overtaken by Spain.
• Investment in India rose by 6% to USD 42 billion.
• Among others in the South Asian region, FDI flows to Bangladesh and Sri Lanka rose to a record level, to USD 3.6 billion and USD 1.6 billion, respectively, while Pakistan witnessed a 27% decline in investment to USD 2.4 billion.
• It supports developing countries to access the benefits of a globalized economy more fairly and effectively.