Home / Knowledge / News / Textiles / India main driver of FDI inflows into S Asia in 2019 H1

India main driver of FDI inflows into S Asia in 2019 H1

Nov '19
Despite trade tensions, foreign direct investment (FDI) in China rose by 4 per cent in 2019 first half to reach $73 billion, according to a United Nations Conference on Trade and Development (UNCTAD) report, which said India was the main driver—with an FDI rise of over 20 per cent to $27 billion—in South Asia, where FDI rose by 14 per cent to $32 billion in the period.

Global FDI flows in 2019 first half were worth $640 billion, 24 per cent higher than the ‘anomalously low level’ of $517 billion in the same period in 2018, said the UNCTAD’s latest Global Investment Trend Monitor. In the first half of 2018, US tax reforms started a wave of repatriations of overseas retained earnings by US multinationals.

However, the value of global FDI flows in the first half of 2019 represented a decline compared to the second half of 2018, and remained below the average level of the past ten years.

In the first half of 2019, FDI flows to developed economies reached $269 billion, almost doubling from the first half of last year, while inflows to developing economies remained relatively stable at an estimated value of $342 billion, said the report.

China remained the second largest FDI host globally after the United States, which received FDI inflows worth $143 billion during the period.

UNCTAD said prospects for the full year's FDI flows remain in line with earlier projections of a 5-10 per cent increase. The rebound of flows in developed economies is likely to hold. Developing countries are expected to remain stable, with growth centring on Southeast Asia.

Southeast Asia remains the region’s growth engine; FDI rose to $93 billion, a 29 per cent increase from 2018 H1. The growth was driven by several economies, including Indonesia, Malaysia, Singapore and Vietnam, with significant new inflows into manufacturing sectors.

However, weaker global economic activities and ongoing trade tensions form the greatest risk to FDI growth, warned the UN organisation.

Fibre2Fashion News Desk (DS)

Interviews View All

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Software Firms, Head honchos

Software Firms
Head honchos

Blockchain technology will shorten lead times

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Davide Maccabruni,

Davide Maccabruni

Schärer Schweiter Mettler (SSM) manufactures and supplies textile...

N Nithyanandan,

N Nithyanandan

Incorporated in 1999, Purani Textiless Private Limited is one of the...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Dave Rousse, INDA

Dave Rousse

INDA, a global association of the nonwoven fabrics industry, has been...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram


Follow Fibre2Fashion On

Advanced Search