World Investment Report, 2022

About the report-

• As per the report, indicates that foreign direct investment (FDI) recovered to pre-pandemic levels in 2021 reaching nearly $1.6 trillion but this course is unlikely to be sustained in 2022.
• Sustainability themed investment products in global financial markets rose by 63% from 2020 and governments around the world seek to develop regulatory frameworks for sustainable finance.
• It has said that in 2022 the business and investment climate has changed dramatically as the war in Ukraine results in a triple crisis of high food and fuel prices and tighter financing. 
• Other factors clouding the FDI horizon include renewed pandemic impacts, the likelihood of more interest rate rises in major economies, negative sentiment in financial markets and a potential recession.
• Despite high profits, investment by multinational companies in new overseas projects were still one-fifth below pre-pandemic levels and for developing countries, the value of greenfield announcements stayed flat.
• UNCTAD foresees that the growth momentum cannot be sustained and that global FDI flows in 2022 will likely move on a downward trajectory, at best, remaining flat. 
• While the recovery benefitted all regions, almost three-quarters of the growth was concentrated in developed economies as FDI flows rose 134 per cent and multinational companies posted record profits. 
• Flows to developing economies rose 30 per cent to $837 billion — the highest level ever recorded — largely due to strength in Asia, a partial recovery in Latin America and the Caribbean and an upswing in Africa. 
• The share of developing countries in global flows remained just above 50 per cent.

FDI inflow to India-

• According to UNCTAD, India jumped one position to 7th among the top recipients of FDI in the last calendar year (2021) despite FDI inflows into the country declining.
• FDI inflows into India declined to $45 billion in 2021 from $64 billion in the preceding year.
• Among the top 10 host economies, only India saw a decline in its inflows. However, outward FDI from India rose 43 per cent to $15.5 billion in 2021.
• Though flows into India declined to $45 billion. A flurry of new international projects were announced. The largest number of projects (23) was in renewables. 
• Large projects include the construction in India of a steel and cement plant for $13.5 billion by ArcelorMittal–Nippon Steel (Japan) and the construction of a new car manufacturing facility by Suzuki Motor (Japan) for $2.4 billion.