NEW DELHI: India’s strong fundamentals and market size will continue to attract market-seeking greenfield investments, Finance Minister Nirmala Sitharaman said in a written reply to Lok Sabha on Monday.
Quoting the World Investment Report 2021, the Finance Minister said FDI inflows into India rose by 25.4 per cent to reach USD 64 billion in 2020, from USD 51 billion in 2019, becoming fifth largest recipient in the world in 2020, up from eighth position it held in the previous year, report agencies.
“As has been witnessed in overall FDI inflows, India’s strong fundamentals and market size will continue to attract market-seeking greenfield investments,” she said.
With regard to India’s contraction in Gross Domestic Product (GDP) by 7.3 per cent in 2020-21, she said this reflects the unparalleled effect of the ‘once in a century’ COVID-19 pandemic and the containment measures that were taken to control the pandemic.
The fundamentals of the economy remained strong as gradual scaling back of lockdowns, along with the astute support of Aatmanirbhar Bharat Mission placed the economy firmly on the path of recovery from the second half of FY 2020-21, she added.
According to the World Bank’s Global Economic Prospects June 2021, she said, global growth for 2021 has been revised upward to 5.6 per cent, largely due to the sharp rebound in major economies driven by continued vaccination and substantial fiscal support.
India is expected to grow at a significantly faster rate compared to the global average growth.