No commercial sector is left untouched by the brunt of the Covid-19 pandemic. The global economic picture is ravaged due to the crisis and is still recovering from it. Among all, Foreign Direct Investment (FDI) is one of the significantly impacted domains. There has been a significant fall in the FDI due to the disrupted financial market across the globe. This paper discusses the current issues relating to FDI and the policies and measures adopted to limit the damage. The paper also focuses on the recent trends post-pandemic to balance the upheaval caused to health and the economy. There are various initiatives that the nations are taking to improve the position of FDI. The initiatives taken by various countries post-pandemic include changes in fiscal policies, tariff rates, investment policies, and other related policies.The FDI is an excellent source for supporting the economies. It helps a nation financially and, on many fronts, such as technology, innovation, assisting in coping with the pandemic, and much more. Therefore, in the light of the importance highlighted, it is crucial to study the challenges and reasons for the decline in FDI. There is also a need to attract more and more economists and industrialists to come forward and take the initiative to help build the economy by formulating policies, plans, and strategies to recover from the loss. The research conducted reveals that reliance is placed on sustainable development by both the investors and the government. Although the industries have started gearing up, it will take time to catch up and fix the prevailing FDI issues. An argument is made that one such issue which leads to a decline in FDI is the lack of transparency. The evidence is presented to show that how lack of transparency has resulted in decline in the FDI. The discussion will revolve around the primary issues concerning the fall in FDI and the plans adopted to revive it in the present scenario.
fiscal policy, tariff rates, sustainable development, transparency
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