India continues to cement its position as a preferred choice for foreign investors. World Investment Report released by United Nations Conference on Trade and Development (UNCTAD) has revealed that India attracted the third-highest foreign direct investment (FDI) in greenfield — new — projects in 2022.
The 2023 edition of the World Investment Report said that the total FDI into India soared by 10 percent, from 44.7 billion dollars in 2021 to an impressive $49.3 billion in 2022.
“India and ASEAN were the most buoyant recipients (of foreign investment), with increases of 10 and 5 percent respectively, and strong growth in project announcements,” the report said.
The report further revealed that India was surpassed only by the United States and the United Kingdom, in terms of FDI inflow. This solidifies India’s reputation as a global economy, firmly placing it on the radar of international investors.
India further consolidated its position as a preferred investment destination by securing the second-largest amount of international project finance in 2022. International project financing refers to International lenders who provide debt or equity to develop infrastructure projects across the world.
Nevertheless, the total FDI in 2022 was lower than what was recorded in 2020, amid the Covid-19 pandemic, when India attracted $64 billion of foreign investments.
In another development signifying the rise of Indian businesses on the international stage, Indian multinational companies substantially increased their overseas investments in 2022. The report disclosed that Indian companies’ invested about $42 billion in overseas, a three-fold increase in total investments.
“Two of the largest greenfield projects were in renewables, with Acme Group announcing a $13 billion plant in Egypt to produce 2.2 billion tonnes of green hydrogen annually and ReNew Power announcing that it will set up a $8 billion green hydrogen plant in the Suez Canal Economic Zone,” the report said referring to the two leading Indian renewable energy firms.
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