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DAILY NEWS ANALYSIS
11 July, 2020
5 Min Read
World Investment Report
GS-Paper-2 International organisation (PT-MAINS)
The United Nations Conference on Trade and Development (UNCTAD) released its World Investment Report.
It projected that the Foreign direct investment (FDI) to the developing Asian economies could drop by as much as 45%. FDI is falling and the immediate picture for many countries is not looking pretty. One sector that is expected to buck this trend is digital services.
Why digital services?
What determines the flow of FDI?
Measures:
The bilateral relationship is an important factor in realising the potential for greater trade and investment in digital services. India and the U.S. are yet to conclude negotiation on a bilateral trade agreement that could address some digital services issues. The US initiated a Section 301 review of whether digital services taxes in 10 countries constitute unfair trade measures, including India’s equalisation levy.
Way forward:
Source: TH
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