India's Economy Could Prove To Be The "Most Resilient" In The Subregion Of South And South-West Asia: UN Report

India's Economy Could Prove To Be The "Most Resilient" In The Subregion Of South And South-West Asia: UN ReportPrime Minister Narendra Modi with Finance Minister Nirmala Sitharaman.

A report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has stated that the Indian economy could prove to be the "most resilient" in the subregion of South and South-West Asia over the long term, reports Economic Times.

"India's economy could prove the most resilient in the subregion over the long term. FDI inflows have been steadily increasing and positive, albeit lower, economic growth after the pandemic and India's large market will continue to attract market-seeking investment," the report said.

Titled "Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021", the report states that in the first three quarters of 2020, even though greenfield FDI inflows declined in South and South-West Asia by 43 per cent, India alone accounted for 77 per cent of the total such inflows.

The report has observed that while inward FDI inflows to South and South-West Asia had decreased by two per cent in 2019, the inflows were driven by India which accounted for 77 per cent ($51 billion) of the total inflows (66 billion), up 20 per cent from the previous year.

The report also noted that the outward FDI flow from the sub-region saw a modest increase in 2019, rising from $14.8 billion in the previous year to $15.1 billion. Of this too, India and Turkey accounted for the majority of the outflows, with India accounting for 80 per cent ($12.1 billion) of the total outflows. This translated into a 10 per cent increase in outward FDI flow from India over 2018.