The government's actions on FDI policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country, with India attracting a total FDI inflow of $72.12 billion from April to January 2021. It is the highest amount ever for the first ten months of a fiscal year, and it is 15% higher than the first ten months of the current fiscal year (US$ 62.72 billion).
According to the data, FDI equity inflows increased by 28% in the first ten months of FY 2020-21 (US$ 54.18 billion) compared to the same period the previous year (US$ 42.34 billion).
Japan has been the most active investor country in India, accounting for 29.09 percent of total FDI equity inflows in January 2021, followed by Singapore 25.46 percent and the United States of America 12.06 percent.
During the first ten months of F.Y. 2020-21, Computer Software & Hardware was the most popular sector, accounting for 45.81 percent of total FDI Equity inflow, followed by Construction (Infrastructure) Activities (13.37 percent) and Services Sector (7.80 percent).
Consultancy services emerged as the top sector with 21.80% of total FDI equity inflow in January 2021, followed by Computer Software & Hardware 15.96 percent and Service Sector 13.64 percent.
These trends in India's FDI confirm the country's status as a preferred investment destination for international investors.