Foreign Direct Investment (FDI) Current Affairs - 2020

Category Wise PDF Compilations available at This Link

UNCTAD: FDI inflows are to drop by 15% due to Corona Virus

The United Nations Conference on Trade, Investment and Development has warned that the Foreign Direct Investment flows all over the world will reduce by 15% due to Corona Virus. According to the organization, the outbreak could cost 2 trillion USD to the global economy.


The United Nations earlier pointed out that the growth of the global economy will be slow between 0.5% and 1.5% for the year 2020-21. With the spread of the virus, the organization has predicted further decline in the economic growth.

FDI in India

India has been easing protocols for foreign companies to invest in the country. The FDI inflow was over 318 billion USD between 2014 and 2019. In 2018-19, the FDI inflow was the highest and it stood at 62 billion USD. The FDI is used in India to track the measure of Make in India. The initiative was launched in 2014 to promote India as an investment destination and a global manufacturing hub.

Get these updates on Current Affairs Today Android App

India plans to boost clean energy sector

The Government of India is planning to integrate largest lenders to the power sector in order to help clean energy firms clear their dues. It includes Rural Electrification Corporation (REC), Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA). The integration will help resolve growing crisis in the clean energy sector and also aid India achieve its ambitious targets in renewable energy.


The discoms are delaying their payments to the generators. This creates difficulties to the banking sector whose repayment is delayed. Eventually further loan processes get delayed. This creates a vicious cycle where the expansion of clean energy sector gets affected ultimately. The current issue hinders India from achieving an ambitious target of 175 GW of renewable energy by 2022.

Measures to increase Solar Energy

Recently GoI launched several steps to achieve the target of 100 GW of solar energy by December 2022. It includes waiver of Inter State Transmission System charges and losses for projects that are commissioned up to December 2022. The Union Government also permitted 100% FDI in the solar energy sector. Apart from these various schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan Yojana (PM-KUSUM) and Solar Roof Top programme were launched.

Measures to increase Wind Energy

In 2016, the Government issued Guidelines for Development of Onshore Wind Power Projects. It included site feasibility, online registry, real time monitoring, compliance of grid regulations and decommissioning plan. In 2017, the Guidelines for tariff based competitive bidding process for wind power projects were issued. Apart from these, the government is also promoting Generation Based Incentives for wind projects.

Get these updates on Current Affairs Today Android App