India has emerged as the top recipient of foreign direct investment (FDI) from within the Commonwealth and is the second-most lucrative source of investment within the 53-member organisation after the UK, according to a new trade review.
The trade review released in the lead up to the Commonwealth Heads of Government Meeting (CHOGM) next week.
'Commonwealth Trade Review 2018: Key points
India remained the top recipient of Greenfield FDI Between the period 2005 and 2016 from the Commonwealth; more than doubling the amount it received over 10 years.
India is also the leading country for attracting Greenfield FDI from the world.
India surpassed China in 2015 for the first time as the biggest destination for Greenfield FDI.
As per the report, intra-Commonwealth exports of goods and services stood at $560 billion in 2016.
Intra-Commonwealth exports of goods and services as a proportion of global trade is rising consistently and is now 20% of Commonwealth countries' total trade with the world.
|Green-field investments occur when a parent company or government begins a new venture by constructing new facilities in a country outside of where the firm is headquartered.|
India’s role in Commonwealth trade
According to the report India has moved into the top five providers of intra-Commonwealth services trade, surpassing Canada, and alongside Australia, Singapore and the UK.
As per the report’s finding, the "dramatic rise" in the increased prominence of intra-Commonwealth investment is driven by India, a country which also presents enormous potential across economic sectors from the application of digital technologies.
Intra-Commonwealth trade is projected to reach $700 billion by 2020, driven in large part by India's economic growth.
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About Commonwealth Trade Review 2018
The theme of Commonwealth Trade Review 2018 is ‘strengthening the Commonwealth Advantage: Trade, Technology which is compiled by the Commonwealth Secretariat.
The report presents new empirical findings, rich insights and practical recommendations on how to boost the ‘Commonwealth advantage’ in trade and investment.
It is compiled in four parts:
Part 1 - Commonwealth trade and investment trends
Part 2 - The Commonwealth in multilateral and regional trade
Part 3 - Harnessing digitisation for Commonwealth trade, investment and prosperity
Part 4 - Deepening the Commonwealth advantage through 21st-century trade governance