Highest-Ever FDI Inflow In India: Major Things To Know

The commerce and industry ministry announced on Monday that foreign direct investments (FDI) into the country increased by 19 percent to $59.64 billion in 2020-21 as a result of steps taken by the government on policy reforms, investment facilitation, and ease of doing business.

Foreign Direct Investment (FDI) policy reforms, investment facilitation, and ease of doing business measures taken by the government have resulted in increased FDI inflows into the nation. The following trends in India's FDI confirm the country's position as a preferred investment destination for international investors:

• During the financial year 2020-21, India received the highest ever cumulative FDI inflow of US$ 81.72 billion, up 10% from the previous financial year 2019-20 (US$ 74.39 billion).
• As compared to the previous year's F.Y. 2019-20 (US$ 49.98 billion), FDI equity inflows increased by 19% in F.Y. 2020-21 (US$ 59.64 billion).
• During F.Y. 2020-21, 'Computer Software & Hardware' has emerged as the leading sector, accounting for about 44% of total FDI Equity inflow, led by Construction (Infrastructure) Activities (13%), and Services Sector (8%).
• Gujarat (78 percent), Karnataka (9 percent), and Delhi (5 percent) are the major recipient states in the Computer Software & Hardware field in FY 2020-21.
• Gujarat is the top recipient state for FDI equity inflows in FY 2020-21, accounting for 37% of total FDI equity inflows, led by Maharashtra (27%), and Karnataka (27%).

Saudi Arabia is the biggest investor in terms of percentage increase among the top ten countries in the fiscal year 2020-21. In contrast to the previous financial year, it spent US$ 2816.08 million, up from US$ 89.93 million. FDI equity inflows from the United States and the United Kingdom increased by 227 percent and 44 percent, respectively, in the Fiscal Year 2020-21 compared to the Fiscal Year 2019-20.