June 2017 Harf Facts - Final

Raj Malhotra’s IAS Study Group
government’s continued support to relax FDI regulations in key areas of the retail sector have provided further
boost to its growth, it noted. In the past year, the government has allowed 100 per cent foreign ownership in
B2B e-commerce businesses and for retailers that sell food products. India’s retail sector has also benefited
from the rapid growth in e-commerce. It is projected to grow 30 per cent annually and reach USD 48 billion by
2020. Retailers have been quick to seize the opportunity with 86 per cent of e-commerce dominated by pureplay
online retailers in 2016.
India ranks 10th in FDI inflows: UNCTAD report
India continues to be among the top ten countries in terms of foreign direct investment (FDI) inflows globally
and the fourth in developing Asia, as per the World Investment Report 2016 by the United Nations Conference
for Trade and Development (UNCTAD). India’s FDI inflows have increased to $44 billion in 2015 as compared to
$35 billion in 2014, and the growth has been across the board, the report said. A surge in investments in the first
four months of 2016 is mainly on account of the Make in India initiative, along side liberalization measures and
reforms initiated by the National Democratic Alliance, which make India an attractive investment decision,
according to Nagesh Kumar, who heads the South, South-West Asia office of the United Nations Economic and
Social Commission for Asia and the Pacific (UNESCAP).
The huge potential offered by India, the fastest growing major economy, is also one of the main reasons, he
added. To be sure, China with more than three times India’s FDI at $136 billion in 2015 is ranked third in terms
of FDI flows among all countries, as per the report. In terms of outflows, there has been a decline in most
developing and transition regions. However, China is one of the exceptions. According to Devendra Kumar Pant,
chief economist and senior director (head, public finance) at India Ratings and Research, “The declining trend in
India’s outflows can be explained by the collapse in the commodity side. In the past most of the corporates used
to buy assets outside and that too commodities such as coal and oil. Their own good performance aided to this.”
Globally, FDI activity has increased by 38%, in a signal that a revival in investment sentiments is on the cards.
The report also talked about striking the right balance between liberalization and regulation to promote
investment for sustainable development. Liberalization measures have been applied by relaxing or eliminating
entry requirements in aviation, financial services, mining and real estate.
Global Innovation Index 2017
Released jointly by WIPO, Cornell University, INSEAD and
the 2017 GII Knowledge Partners, the Confederation of
Indian Industry, PwC’s Strategy& and the National
Confederation of Industry (CNI) and Brazilian Micro and
Small Business Support Service (Sebrae). Switzerland,
Sweden, the Netherlands, the USA and the UK are the
world’s most-innovative countries, while a group of
nations including India, Kenya, and Viet Nam are
outperforming their development-level peers, according
to the Global Innovation Index 2017 co-authored by
Cornell University, INSEAD and the World Intellectual Property Organization (WIPO).
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