UNCTAD and Indian MNEs The rise of new global contender MNEs from large emerging

markets (EMs) is leading to significant structural transformation of global industries, international institutions, and global power (re)arrangement.

Outward FDI undertaken by these Emerging Markets (EMs) multinational enterprises (MNEs) is growing fast as they are on a buying spree of assets and companies abroad.

The share of EMs in global FDI outflows increased to 19% in 2008 and further to 25% in 2009 (UNCTAD, 2010).

Among relatively large EMs, India’s annual compound growth of 176% during 2000-2008 had been unprecedented, ahead of its counterparts such as China (165%), Brazil (123%), and Russia (151%), although from a relatively lower base (UNCTAD, 2010).

IntroductionUNCTAD- United Nation Conference On Trade And Development

It is a platform or simply a forum where representatives of all countries can freely engage in dialogue and discuss ways to establish a better balance in the a global economy.

UNCTAD ,is gonverned by its 149 members states ,in the United Nation body responsible for dealing with development issues, particularly international trade “The Main driver Of development”

It was established in 1964. The first step towards the creation of UNCTAD was taken when the UN General assembly declared the 1960’s as the UNITED NATIONS DEVELOPMENT Decade in December 1961.UNCTAD recognized the need for adopting measures by developed countries to bring the gap between the rich and the poor nations through trade and aid.

It was on the recommendation of the UN economies and social council in 1963 for convening a conference on the trade and development that the UNCTAD is a permanent organ of the UN General Assembly with it’s Head Quarter at GENEVA in SWITZERLAND First meeting was held at Geneva in 1964.there are various conferences of UNCTAD which held in different countries the first unctad was held in 1964 at Geneva in Switzerland after, its second conference of unctad was held in 1968 at new delhi in india after that, the third conference of unctad was held in 1972 at santiogo in chile the fourth unctad was held in 1976 at Nairobi in Kenya and the fifth conference was held in 1978 at manila in Philippines and the unctad14 scheduled to be held in Nairobi in Kenya in 2016.

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India’s outward FDI position is much more active than its comparator economy China, which received about $500 billion in inward FDI before its firms began to substantially invest abroad and maintained its inward FDI five times its outward FDI as late as 2007 – substantial inward FDI and outward FDI of India started almost at the same time and India’s total outward FDI (e.g., $25 billion in 2007) is almost as large as total inward FDI (e.g., $17 billion in 2007).

India leads regional foreign direct investment – UNCTAD

Foreign direct investment (FDI) inflows to South Asia rose to $41 billion in 2014, primarily owing to good performance by India, according to UNCTAD's World Investment Report 2015. FDI inflows to the country surged by 22 per cent to about $34 billion. 

FDI inflows to India are likely to maintain an upward trend in 2015 as economic recovery gains ground, In terms of the sectoral composition of FDI inflows, manufacturing is likely to gain strength, as policy efforts to revitalise the industrial sector are sustained, including, for example, the "Make in India" initiative launched in mid-2014. 

The automotive industry is a key part of the Indian economy and has been identified as one of the key industries in which India has the potential of becoming a world leader. According to data from the Indian government, accumulated FDI inflows to the automotive industry from April 2000 to November 2014 amounted to $11.4 billion.

The country accounted for the majority of Greenfield investment projects announced by global automakers and first-tier parts suppliers in South Asia during 2013–2014, including 12 projects above $100 million. 

Inward FDI has led to the emergence of a number of industrial clusters in India, including those in the National Capital Region (Delhi-Gurgaon-Faridabad) in the north, Maharashtra State (Mumbai-Nasik-Aurangabad) in the west, and Tamil Nadu State (Chennai-Bangalore-Hosur) in the south).

Though considerable differences exist in the patterns of the formation of these clusters, FDI can play an important catalytic role.

FDI flows into India nearly doubled in 2015: UNCTAD

Foreign Direct Investment flows into India nearly doubled in 2015 while the US emerged as the top host country for FDI last year, according to UN's trade agency.

Global FDI flows "unexpectedly" increased significantly by 36%, according to the annual report of the United Nations Conference on Trade and Development released.

India's FDI investment increased from $33.9 billion to $59.4 billion which marks a 75% increase while green field investments have increased from $25.4 billion to $64 billion recording an increase of 152%, the report said.

Top 5 recepients of south asia.

India’s major industrial cluster.

FDI flows overview in millions of dollars.

2005-2007 2011 2012 2013 2014 (Pre-crisisannual average)India Inward 17 766 36 190 24 196 28 199 34 417 Outward 11 501 12 456 8 486 1 679 9 848

China Inward 76 214 123 985 121 080 123 911 128 500 Outward 19 977 74 654 87 804 101 000 116 000

Pakistan Inward 4 021 1 326 859 1 333 1 747 Outward 84 62 82 212 116

Developing economies * Inward 420 866 639 135 639 022 670 790 681 387 Outward 193 977 357 570 357 249 380 784 468 148 World * Inward 1 397 430 1 563 749 1 402 887 1 467 233 1 228 263 Outward 1 423 430 1 587 448 1 283 675 1 305 910 1 354 046

greenfield investment report. (million of dollars ) As destination

region 2005-2007 2012 2013 2014 (Pre-crisisannual average)India 42 460 31 267 18 917 24 976 Memorandum China 101 510 78 547 75 740 77 411

Pakistan 5 963 4 153 3 067 7 858 South Asia 52 803 39 296 26 368 38 957

Asia and Oceania 305 454 230 354 244 332 269 807 Developing * 452 271 356 324 452 478 447 548 Economies.World * 784 614 630 757 707 378 695 577