India top recipient of Commonwealth FDI

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:
 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.
 About Commonwealth Trade Review 2018
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 digitization for Commonwealth
trade, investment and prosperity
Part 4 - Deepening the Commonwealth advantage
through 21st-century trade governance
 Commonwealth trade and investment trends
 The state of Commonwealth countries’ trade with the
world
o Volumes and trends
o Changing dynamics of Commonwealth trade
o Commonwealth export sophistication
o Commonwealth trade with developing countries
 The state of intra-Commonwealth trade
 Commonwealth FDI flows in a global context
 Prospects for intra-Commonwealth trade

 Trends in intra-Commonwealth investment

 Commonwealth FDI flows in a global context
 Trends in productive investment in the Commonwealth
The Commonwealth in multilateral and regional trade

 The Commonwealth and trade multilateralism

 The Commonwealth and resisting protectionism
 The Commonwealth and an enabling global trading
environment
 The future of the multilateral trading system
 Commonwealth members in regional trade and
integration initiatives
 Harnessing digitisation for Commonwealth trade,
investment and prosperity
 Disruptive technologies, trade and jobs
 Closing the gaps: implications for growth and
development
 Harnessing digitisation for Commonwealth trade and
development
 Digital trade and e-commerce
 Fin-tech and financial innovation
 Enhancing productive and trade capacities
 Power generation and renewable energy
 Agriculture
 Oceans economy
 Tourism
 Overcoming technology gaps in the Commonwealth
 Access to the internet
 Speed of internet access
 Investments in internet infrastructure
 Deepening the Commonwealth advantage through
21st-century trade governance
 The Commonwealth advantage and trade costs
 Governance, trade and economic performance in the
Commonwealth
 Governance impacts on Commonwealth trade and
investment
 The gravity model
 Major findings for Commonwealth trade and investment
 Findings for trade governance