South Asia Current Affairs - 2020
On June 16, 2020, the United Nations Conference on Trade and Development released its World Investment Report, 2020. According to the report, India is the 9th largest recipient of FDI in 2019.
Key Findings: India
According to the report, the FDI of India has increased from 42 billion USD in 2018 to 51 million USD in 2019. In the region of Asia, India was among the top 5 countries.
The report says that the investments in Digital sector of India was highly promising. The investors of India in the first quarter of 2020 concluded deals that were worth of 650 million USD and majority of the deals were in digital sector.
Key Findings: World
The report said that the global FDI inflows are to decrease by 40% in 2020 as compared to 2019. This is the first time since 2005 the global FDI falls below 1 trillion USD mark. The FDI of developing economies in Asia are to hit hard and decline up to 45% in 2020.
The FDI inflows in South Asia increased by 10%. The growth in the investment was driven largely by the growth of India.
Tags: Digital Platform • FDI • FDI to India • South Asia • United Nations
The World Bank in its latest Global Economic Prospect downgraded its projection of growth of India by -9%. However, the World Bank believes that Indian growth is to bounce back in 2021.
The World Bank says that the growth of India has slowed by 4.2% in 2019-20. The other international rating agencies such as Fitch ratings, Moody’s Investor Service, S&P Global Ratings have all predicted India’s growth rate as 4% to 5% in the year 2020-21. According to Crisil, this is India’s fourth economic recession since independence.
Key Findings of the report
The Key findings of the report about India are as follows
- The report says that the Government of India has been purchasing government bonds to ease financial conditions
- The Indian Government has increased its spending to contain COVID-19. This has been done through
- Wage support
- Deferral in tax payments
- Cash transfer to lower-income households
- Loan and liquidity support to small businesses and financial institutions.
- The contraction of Indian Economy will find its impact in South Asian region
The report says that in the South Asian region, Pakistan and Afghanistan are to experience contractions in the year 2020. Bangladesh is expected to grow at 1.6% and Nepal is expected to grow at 1.8%
India is the fifth worst hit nations in the world after USA, Brazil, Russia and UK.