Prelims: Current events of national and international importance | Reports & Indices
Why in News?
The United Nations Conference on Trade and Development (UNCTAD) released the Trade and Development Report 2026.
- The report emphasizes the increasing significance of strategic sectors such as artificial intelligence infrastructure, semiconductors, and energy transition technologies.
Greenfield investment refers to a form of Foreign Direct Investment (FDI) where a company creates a new business operation in a foreign country.
India’s Contribution
- Between 2020 and 2025, India represented 5.7% of global greenfield investments, which is more than twice the share attributed to China at 2.8%.
- Developing Asia received a substantial share of strategic investments compared to other developing economies.
Geographic Distribution of Strategic Investment
- Europe and North America collectively accounted for 56.4% of global strategic investment.
- Within developing economies, the majority of investment was concentrated in developing Asia.
- China, India, Indonesia, Malaysia, and Singapore emerged as primary destinations for new strategic investment.
- A key concern is that least developed countries (LDCs) and other developing economies struggle to integrate into global strategic industries due to the geographic concentration of investment.
Sector-wise Investment
- The report indicates that strategic sectors increased their share of global greenfield investment from 16% to 44% between 2020 and 2025.
- The report highlights the following key areas of investment:
- The total global greenfield investment reported for the period was $845.7 billion.
- AI infrastructure and related technologies accounted for the largest share among the identified strategic sectors.
Industrial Policies: India’s Position
- In the period from 2022 to 2025,
- India implemented a total of 707 industrial policy measures.
- The rate of industrial policy implementation increased both globally and within India.
- During this period, India declined in comparative rankings, as the United States, China, Australia, and Brazil implemented a greater number of measures.
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United Nations Conference on Trade and Development
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- Established – 1964.
- Headquarters – Geneva, Switzerland.
- Parent body – United Nations General Assembly.
- Objective – To promote the integration of developing countries into the global economy in a way that supports development.
- Key areas of work – International trade, investment, finance, technology, debt and sustainable development.
- Reports – Trade and Development Report, World Investment Report and Technology and Innovation Report.
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Reference
The Hindu | Global Greenfield Investments
