Fiscal year 2021 registered 10% more FDI inflow than the last financial year
‘Computer Software & Hardware’ has emerged as the top sector which attracted around 44% share of the total FDI Equity inflow
The second and third highest FDI flow happened to Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
New Delhi, NFAPost: India attracted highest ever total foreign direct investment (FDI) Inflow Of $ 81.72 Billion During 2020-21, registering 10% growth compared with the last fiscal year.
According to the Finance Ministry statistics, FDI equity inflow grew by 19% during fiscal 2021 to reach $ 59.64 billion compared to the previous fiscal year of $49.98 billion.
As the statistics, computer software and hardware have emerged as the top sector which attracted the highest quantum of FDI investment during the period with around 44% share of the total inflow. It is followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
According to Arvian Research, measures are taken by the government on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country.
“It is important to note that event during the first wave of Covid-19 pandemic India succeeded in harnessing more FDA which shows investors appetite to bet on India. The global investor community has realised that investing in the Indian market is growing and investing there is a must,” said Arvian Research.
The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:
India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).
FDI equity inflow grew by 19% in fiscal 2021 ($ 59.64 billion) compared to the previous year fiscal 202o ($ 49.98 billion).
In terms of top investor countries, ‘Singapore’ is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for fiscal 2021.
‘Computer Software & Hardware’ has emerged as the top sector during F.Y. 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 are Gujarat (78%), Karnataka (9%), and Delhi (5%) in fiscal 2021.
Gujarat is the top recipient state during the F.Y. 2020-21 with 37% share of the total FDI equity inflows followed by Maharashtra (27%) and Karnataka (13%).
The majority of the equity inflow of Gujarat has been reported in the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%) during fiscal 2021.
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 fiscal 2021 as compared to the previous year.
Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during fiscal 2021. It invested S$ 2816.08 million in comparison to $ 89.93 million reported in the previous financial year.
227% and 44% increase recorded in FDI equity inflow from the USA & the UK respectively, during the fiscal 2021 compared to fiscal 202o.