Daily Current Affairs for UPSC Civil Services Exam – 21 October 2020

Daily Current Affairs for UPSC Civil Services Exam – 21 October 2020

In Today’s News:

  1. Foreign Direct Investment (FDI) blooms during COVID-19.

1. Foreign Direct Investment (FDI) blooms during COVID-19

News Summary

“FDI equity inflow received during FY21 (April to August 2020) is $27.1 billion. It is also the highest ever for the first five months of a financial year,” the ministry said.

Prelims GS – Economic Development

FDI Inflow – Report by the Ministry of Commerce and Industry:
  • From April to August 2020, the total FDI inflow of US$ 35.73 billion is received. It is the highest ever for the first 5 months of a financial year and 13% higher as compared to the first five months of 2019-20 (US$ 31.60 billion).
  • FDI equity inflow received during F.Y. 2020-21 (April to August 2020) is US$ 27.10 billion. It is also the highest ever for the first 5 months of a financial year and 16% more compared to the first five months of 2019-20 (US$ 23.35 billion).
FDI:
  • Foreign Direct Investment takes place when an investor establishes foreign business operations or acquires foreign business assets, and establishes ownership or controls interest in a foreign company.
  • FDI brings in a long term capital for the economy.
  • FDI is not only bringing money but also knowledge, skills, and technology.
Routes of FDI:
  • Automatic Route: Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from the Government of India for the investment.
  • Government Route: Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministries/Departments.

Mini Insights

Mains GS3 – Economic Development

Benefits of FDI:
  • Increased Employment and Economic Growth
  • Human Resource Development
  • Exchange Rate Stability
  • Development of Backward Areas
  • Increase in Exports
  • Improved Capital Flow
  • Creation of a Competitive Market
  • Provision of Finance and Technology
  • Stimulation of Economic Development

Click here or visit the Invest India website and know more about these points in detail.

 

 

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