According to a report released by the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) flows into India increased by 10% to US$ 49 billion in 2022, making it the third-largest host country for announced greenfield projects and the second largest for international project finance deals.
According to the latest World Investment Report by the UNCTAD, despite diminishing trends in global FDI, India remained in eighth place in terms of FDI inflows. According to the analysis, outward investment by Indian multinational corporations (MNEs) dropped by 16% to US$ 15 billion in 2022. However, Indian MNEs announced US$ 42 billion worth of greenfield projects, more than double their previous total.
Acme Group announced a US$ 13 billion plant in Egypt to produce 2.2 billion tonnes of green hydrogen yearly, while ReNew Power announced a US$ 8 billion green hydrogen plant in the Suez Canal Economic Zone.
Over 70% of all FDI in the world came from emerging nations. It rose by 4%, reaching US$ 916 billion. The growth in FDI in emerging countries is unevenly distributed. Many of the major emerging economies accounted for the majority of the growth.
The number of greenfield investment projects announced in emerging nations climbed by 37%, while international project finance arrangements increased by 5%. This is a good sign for investment opportunities in industry and infrastructure.
According to UNCTAD, among the largest announced greenfield projects in India are Foxconn and Vedanta Resources’ plans to build one of India’s first chip factories for US$ 19 billion and a US$ 5 billion project to produce urea from green hydrogen by a joint venture of TotalEnergies of France and the Adani group. Steelmaker POSCO and the Adani group funded the US$ 5 billion development of a steel factory in Gujarat, contributing to a 64% increase in project finance deals.
The number of investment-friendly measures reached 102, substantially tripling from the previous year and restoring their pre-pandemic share of total measures.
