India's foreign direct investment (FDI) outflows more than doubled in 2017 to $11.3 billion while FDI inflows fell 9% to $40 billion during the year, according to the latest World Investment Report, 2018, released by the United Nations Conference on Trade and Investment (UNCTAD).
"Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries", UNCTAD Secretary-General Mukhisa Kituyi said. Meanwhile, FDI flows to developing economies remained stable at $671 billion, with investment into Latin America rising for the first time in six years. After acquiring a 26 per cent stake in Vankorneft, an affiliate of Russia's national oil company Rosneft PJSC, in 2016, ONGC bought a 15 per cent stake in an offshore field in Namibia from Tullow Oil in 2017.
India is the fourth highest investor in Africa among developing economies, after China, South Africa and Singapore, the report found.
"This negative trend is a long-term concern for policy makers worldwide, especially for developing countries, where global investment is indispensable for sustainable industrial development", UN Secretary-General Antonio Guterres said in the report.
Inward flows to developed economies dropped 37 percent to $712 billion as mergers and acquisitions fell 29 percent.
The UN projects FDI flows will rise "marginally" this year, by about 5 percent to $1.5 trillion, while remaining below the average over the past decade, amid policy uncertainty and trade tensions.
"The new industrial revolution is already affecting cross-border investment patterns".