India; South Asia’s most resilient economy in the long run

A new UN report predicts positive economic growth for India after the Covid-19 epidemic, and says the country’s large market will continue to attract investment.

According to the study, foreign direct investment (FDI) in South and Southwest Asia fell slightly last year, from $ 67 billion in 2018 to $ 66 billion. However, growth was said to have been driven mainly by India, which accounted for 77 percent of the region’s total inflows, and received $ 51 billion in 2019, up 20 percent from a year earlier.

Investing in India has evolved from IT services for multinational corporations (MNEs) to a thriving local digital ecosystem, where many domestic actors – especially in e-commerce – have attracted significant international investment. .

In the short term, both inputs and outputs to this area are expected to decrease. The United Nations said that in the first quarter of 2020, the value of foreign direct investment inflows fell by 43% compared to the same period last year, indicating a reversal of growth in the region.

However, India’s economy could be the most resilient in the region in the long run. The inflow of foreign direct investment is steadily increasing, and positive economic growth, albeit lower, continues to attract market-seeking capital after the epidemic and the large Indian market.

In particular, the country’s rapidly growing telecommunications and digital spaces can be accelerated, while global investment companies and technology companies continue to show interest in the country’s market through purchases.

According to the United Nations, Facebook and Google invested in Geo India operating systems in 2020, worth $ 5.7 billion and $ 4.5 billion, respectively.

Estimates show that by 2025, major digital sectors such as information technology and business process management, digital communications services and electronics manufacturing could double in size.

In addition, this epidemic has increased the tendency of many sectors such as agriculture, education, energy, financial services, logistics to further digitization, while Covid-19 has led many individuals and companies to adopt solutions. And driven digital processes.