India received $67.54 billion in FDI inflow from April to December 2020, according to the Ministry of Commerce and Industry. It's the highest it's ever been for the first nine months of a fiscal year, and it's up 22% from the same period last year.
The government has worked hard to create an FDI policy that is both encouraging and beneficial to investors. For India's economic development, foreign direct investment (FDI) is a major engine of change and a significant source of non-debt financing.
The aim has been to make the FDI policy more investor-friendly and to eliminate policy bottlenecks that have stifled investment inflows into the country. The measures are taken in this direction over the last six and a half years have paid off, as evidenced by the steadily rising volumes of FDI inflows into the country.
The following trends in India's FDI are evidence of the country's position as a favoured investment destination among international investors:
1) Between April and December 2020, India received a total of $67.54 billion in FDI. It's the highest figure for the first nine months of a financial year ever (US$ 55.14 billion), and it's up 22 percent from the same span last year (US$ 55.14 billion).
2) In the first nine months of the Fiscal Year 2020-21 (US$ 51.47 billion), FDI equity inflows increased by 40% compared to the same timeframe the previous year (US$ 36.77 billion).
3) Inflows of foreign direct investment (FDI) rose by 37% in the third quarter of 2020-21 (US$ 26.16 billion) compared to the third quarter of 2019-20 (US$ 19.09 billion).
4) As compared to December 2019 (US$ 7.46 billion), FDI inflows increased by 24% in December 2020 (US$ 9.22 billion).