India Is 9th Largest Recipient Of FDI; Foreign Reserves Swell To $500 Billion, 1st Time Ever!
When India claimed its Independence in 1947, we had just Rs 1500 crore with us. Now now, our foreign reserves are about to breach half-trillion-dollar mark, for the first time ever.
Meanwhile, India has just become world’s 9th largest recipient of foreign direct investment, and this way, we have entered the top 10 nations to receive FDI, first time ever.
India Is 9th Largest Recipient Of FDI
As per The UN Conference on Trade and Development (UNCTAD), India received total of $51 billion in FDI in 2019, which makes us 9th largest recipient of FDI.
As per the The World Investment Report 2020 report released by the UN, compared to $42 billion of FDI received in 2019, India received $52 billion in 2019, and this way, India entered the top 10 list of nations receiving FDI.
Last year, India was ranked #12 in the list.
Within Asia, India was ranked in the top 5 list of nations receiving FDI.
As per the UN, global FDI can reduce by 40% in 2020, due to the coronavirus epidemic.
India’s Foreign Reserves Is $500 Now
In the week ended June 5th, India’s foreign reserves swelled by $8.22 billion, to reach half a trillion mark, for the 1st time ever in history.
As per RBI’s weekly statistical data, India’s foreign reserves is now $501.7 billion, compared to $493.4, a week back.
India’s foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and India`s reserve position with the International Monetary Fund (IMF) are included in the overall foreign reserves calculation.
The Principal Economic Advisor in the Ministry of Finance Sanjeev Sanyal in a tweet said, “India’s Foreign Exchange Reserves hit USD501.7 billion. As I have been saying in recent weeks, demand suppression (such a lockdown) would push the INR to appreciate after an initial capital outflow.”
An Amazing History Of India’s Foreign Reserves
- In 1947, when India got independence, we had just Rs 1500 crore in cash with us, and even paying Rs 55 crore to Pakistan was a big deal. Mahatma Gandhi had to keep a day’s fast to convince Vallabhbhai Patel to transfer Rs 55 crore to Pakistan.
- Then we started storing foreign reserves to the calamity and emergency.
- In 1960, India had foreign reserves of $1.46 billion, which could have lasted just 8 weeks of import.
- In 1980, India had foreign reserves of $7 billion
- In 1991, India’s foreign reserves dipped to an alarming level of just $1.2 billion, which could have lasted just 3 weeks of imports. RBI had to pledge 46.91 tonnes of gold with the Bank of England and the Bank of Japan, and raised $400 million to deal with the unprecedented crisis
- In 2004, for the first time, we achieved foreign reserves of $100 billion
- Due to solid performance of our foreign reserves, we somehow navigated the recession of 2009, and our foreign reserves stood at $270 billion
- And now, for the first time in our history, India will have $500 billion of foreign reserves, which is enough to sustain imports for 17 months.
- We are right now world’s 3rd biggest nation with foreign reserves, after China and Japan.
India has indeed come a long way from having just Rs 1500 crore in cash to pledging Gold to sustain the economy, to crossing half a trillion-dollar of foreign reserves.