UNCTAD Current Affairs - 2019
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According to the World Investment Report 2019, released by United Nation Conference on Trade and Development (UNCTAD), Foreign Direct Investment (FDI) inflows to India grew by 6% to USD 42 billion in 2018. India was ranked among the top 20 host economies for FDI inflows in 2017-18.
Key Findings of Report
FDI to India: It grew by 6% to $42 billion in 2018 saw strong inflows in manufacturing, financial services sectors, communication and cross-border merger and acquisition activities.
FDI inflow to South Asia: It increased 3.5% to $54 billion dollars. It highlighted that the prospects for FDI inflows into South Asia are largely determined by expectations of growing investment into India. India has historically accounted for 70% to 80% of inflows that came to the South Asian region. Among other countries in South Asian region, FDI flows to Sri Lanka and Bangladesh rose to record level, to $1.6 billion and $3.6 billion respectively, but Pakistan witnessed a 27% decline in investment to $2.4 billion.
It was established in 1964 for integrated treatment of trade and development and related issues in areas of investment, finance, technology, enterprise development and sustainable development. It is organ of UN General Assembly (UNGA). There are 195 members in UNCTAD. Its mandate is to maximize trade, investment and development opportunities of developing countries and assist them in their efforts towards integrating into world economy on an equitable basis without any bias.
According to a United Nations’ report titled World Economic Situation and Prospects (WESP) Report 2019 Mid-year Update, India’s economy is projected to grow at 7.1 % in fiscal year 2020 which will be backed by strong domestic consumption and investment.
Key Findings of Report
- Global Growth: For both developed and developing countries, 2019 growth projections have been downgraded. The growth outlook for many developing economies was also weakened. After an expansion of 3% in 2018, world gross product growth is now projected to settle to 2.7 % in 2019 and 2.9 % in 2020.
- India’s Growth: Despite a downward revision growth in Indian economy remains strong amid robust domestic demand. India is projected to grow at 7% in fiscal year 2019 and 7.1% in fiscal year 2020.
- Risk Projections: As per WESP report, certain risks that could trigger a prolonged slowdown in the world economy’s growth include an escalation in trade disputes, a sudden deterioration in financial conditions, and accelerating effects of climate change.
- The increasing frequency and intensity of natural disasters globally highlight the rising threats faced from climate change, particularly by most vulnerable economies.
- Recommendations: To tackle current growth slowdown it would require a combination of monetary, fiscal and development-oriented measures. Also, there is an immediate need of more coordinated multilateral approach to global climate policy, which includes use of carbon pricing mechanisms.
About WESP Report
It is a joint product of United Nations Department of Economic and Social Affairs (UNDESA), the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions.
Tags: Fiscal Year • Indian Economy • UN Report • UNCTAD • UNDESA • United Nations Conference on Trade and Development • United Nations Department of Economic and Social Affairs • WESP Report • World Economic Situation and Prospects (WESP) Report 2019 Mid-year Update