UN Report: India Emerges as Strong Recipient of Foreign Investments
According to the United Nations’ Financing for Sustainable Development 2024 Report, India continues to attract significant foreign investments, positioning itself as a robust manufacturing base alternative for multinational corporations amidst supply chain diversification strategies.
Released on Tuesday, the report highlights India’s growing appeal to multinationals seeking diversification from developed economies. While underscoring India’s role as an “alternative manufacturing base,” the report refrains from explicitly mentioning China, suggesting geopolitical motivations behind this trend.
In contrast to India’s favorable investment climate, the report paints a grim picture for the developing world, characterizing it as facing a “sustainable development crisis” due to overwhelming debt burdens and soaring borrowing costs.
Deputy Secretary-General Amina J. Mohammed emphasized the urgent need for leaders to fulfill promises, warning that without adequate financing, the UN’s 2030 sustainable development targets cannot be achieved. Mohammed also called for urgent reforms to global financial institutions to address contemporary challenges effectively.
The report highlights initiatives such as the New Development Bank (NDB), established by BRICS, intending to issue 30% of its loans in national currencies, including Indian rupee-denominated bonds between 2022 and 2026.
However, the report also sounds alarm bells, stressing the urgency of mobilizing financing to bridge the development financing gap, now estimated at $4.2 trillion annually. It emphasizes that rising geopolitical tensions, climate disasters, and a global cost-of-living crisis are hampering progress on healthcare, education, and other development targets worldwide.
