Speed Post News Network
New Delhi : Measures taken by the Government on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country.
The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors :
- India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher compared to the last financial year 2019-20 (US$ 74.39 billion).
- FDI equity inflow grew by 19% in the FY. 2020-21 (US$ 59.64 billion) compared to FY. 2019-20 (US$ 49.98 billion).
- In terms of top investor countries, ‘Singapore’ is at the apex with 29%, followed by the USA (23%), and Mauritius (9%) for FY. 2020-21.
- ‘Computer Software & Hardware’ emerged as the top sector during FY 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%), and Services Sector (8%) respectively.
- Under the sector `Computer Software & Hardware’, the major recipient states were Gujarat (78%), Karnataka (9%), and Delhi (5%) in FY 2020-21.
- Gujarat was the top recipient state during FY 2020-21 with 37% share of the total FDI Equity inflows followed by Maharashtra (27%), and Karnataka (13%).
- Majority of the equity inflow of Gujarat has been reported in the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%) during FY 2020-21.
- The major sectors, namely Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100% jump in equity during FY. 2020-21 as compared to the previous year.
- Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during FY 2020-21. It invested US$ 2816.08 million in comparison to US$ 89.93 million reported in the previous financial year, according to a PIB release
- 227% and 44% increase recorded in FDI equity inflow from the USA & UK respectively, during FY 2020-21 compared to FY 2019-20.