Analysis About World Investment Report, 2020 in Relation to India

Introduction

Recently, the United Nations Conference on Trade and Development (UNCTAD) released the World Investment Report, 2020. UNCTAD was established in 1964 to promote development friendly integration of development countries into the world economy. World Investment Report (WIR) focuses on trends in foreign direct investment (FDI) worldwide, and also at the regional and country levels and emerging measures to improve its contribution towards development.

The World Investment Report provides:

1. Comprehensive analysis of product demand on global as well as regional markets.
2. Draw up information on major market trends, drivers and obstacles.
3. Complete coverage of all products and market segments for pattern evaluation, global market innovation and market size forecast up to 2025.
4. Review of the Companies which operate on the product of the global market.
5. Growth matrix offers brand segment and geography analysis that will be focused on investing, consolidating and growing.

World Investment report 2020, also talks about India’s Investment scenario.

Major Highlights

• According to the report, global FDI flows decrease by up to 40% in 2020, earlier in 2019 the value is $1.54 trillion.
• This would bring global FDI by $1 trillion for the first time since 2005. The FDI would further decrease by 5 to 10% in 2021.
• The investment flows are expected to recover by 2022.
• Developing economies are expected to see the biggest fall in FDI because they rely more on investment in Global Value Chain (GVC) based industries, which have been severely hit due to COVID-19 pandemic.
• India jumped from 12^th position to 9^th position in 2019 among the world’s largest FDI recipients.
• Report also observed that FDI into India may decline sharply into 2020 because of the impact of the COVID-19 pandemic and consequent lockdown measures, supply chain disruptions and economic slowdown.
• A Greenfield investment is a type of FDI in which a parent company creates a subsidiary in a different country, building its operation from the ground up.
• In India the number of Greenfield investment announcements declined by 4% in the first quarter of the Financial year

Significance

This report is made every year to aware the businessman, investors, general public, government, states about the current rate of investment. World Investment report also provides information regarding Foreign Direct Investment and what will happen in coming years according to the reports of previous years.

It tells about the economy and economic system of all countries involved or has collaboration with United Nations Conference on Trade and Development (UNCTAD).

It gives an analysis of the companies investing in the global market, analysis of product demand on global as well as regional markets, draw up information on major market trends, drivers and obstacles, detailed review of many vendors present on the market and competitive world consisting of launches, mergers, acquisitions, partnerships and joint projects with new products.

International Law Involved

1. United Nation Commission on International Trade Law.
2. Foreign Investment Law of Spain, China, Israel, Italy, Japan, Belgium, France, Soth Africa, China, Indonesia, Kazakhstan, Myanmar, Oman, Philippines, Qatar, Ukraine, India, Uzbekistan, Viet Nam.
3. Cybernetic National Security Perimeter Law.
4. National Investment Law.
5. Customary International Law.
6. Air Quality Law of several countries involved in World Investment Trade.
7. Other Investment Laws.
8. Strategic Laws of Albania.
9. 180 Other Laws related to Investment of all the respective countries involved.

Critical Analysis

UNCTAD was established in 1964 to promote development friendly integration of development countries into the world economy. The World Investment Report was first published in 1991 which focuses on trends in foreign direct investment (FDI) worldwide and also at regional levels.

WIR not only provides analysis of FDI worldwide but also at regional markets, major trends, drivers, obstacles, companies that operate in global market, mergers, acquisitions, partnership and joint ventures which have a direct connection to investment directly or indirectly.

All the reports and data collection and analysis by WIR help the investors to estimate future rates or events happening through the graphs or report made by WIR.

Conclusion

World Investment Report gives a brief to the investors (where to invest, what to invest, when to invest and how much to invest), which include both private and government companies and also the individuals.

WIR, 2020 involves total of 180 International Laws of different-different countries including India, China, Italy, Ukraine, Kazakhstan etc. WIR, 2020 also talks about COVID-19 pandemic and consequent lockdown impact on the world and the respective countries investors and the measures to curb the Foreign Direct Investment (FDI). It talks about upcoming policies that countries are thinking to implement.

WIR is beneficial for the companies who want to invest for a long period of time in International Market or in Global world and regional markets. All the global market investors should take the help or support of World Investment Report in order to curb their business at a higher rate with efficiency and effectively in the global world or market.

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