PRE AND POST COVID 19 IMPACT ON FOREIGN DIRECT INVESTMENTS IN INDIA

Abstract

Covid – 19 has battered the World economy causing the worst recession than the Great Depression of the 1930’s.  By the end of the year 2020, the World’s GDP about 7.5% lower than it would have been without the pandemic. Globally more than 15% of the middle age people who were in work before the Covid-19 have lost their jobs. Worldwide lockdowns have caused changes that were affected the World economy in technology, finance and trade. With great deal of uncertainty in the transactional space, investors are now more cautious before making any important transactions. World FDI inflows fell by more than 49% in the first half of 2020 and even under the most optimistic scenario after the economic support policy measures by the governments, the numbers don’t seem to be getting better. The developing countries are hit even worse because the sectors attracting the largest shares of FDI such as primary and manufacturing sectors are hit the worst. FDI being a critical driver of the economic growth could play an important role in supporting the economies during and after the crisis.