According to Economic Survey 2020-21 most preferred country among emerging markets for investment during FY 2020-21 is:

Question

Accepted Answer

The correct option is 1:

According to the Economic Survey 2020-21, India was highlighted as the most attractive destination for Foreign Direct Investment (FDI) among emerging market economies during the Financial Year 2020-21. This period was marked by the global economic disruption caused by the COVID-19 pandemic, yet India witnessed strong inflows due to several factors: a large domestic market, continuous structural reforms aimed at improving the ease of doing business, attractive government policies like Production Linked Incentive (PLI) schemes, and the relative stability of its democratic institutions. The Survey noted that India was a standout performer, often being cited by international agencies and investors as a highly resilient and preferred long-term destination, benefiting from the global shift in supply chains.

The incorrect option is 2 (Russia), 3 (Pakistan), and 4 (Brazil):

These countries were generally not ranked as the 'most preferred' for overall investment compared to India during FY 2020-21. Russia, while a significant emerging market, faced persistent challenges regarding geopolitical risks and energy-sector dependence, which often deterred widespread foreign investment. Brazil, another major emerging market, struggled with significant economic contraction, political instability, and high COVID-19 infection rates during this period, dampening investor confidence. Pakistan’s investment climate was severely constrained by macro-economic volatility, high sovereign risk, and structural issues, placing it much lower on the preference list for global investors seeking stability and growth potential.