As the Ministry of government statement stated that “Measures taken by the Government on the fronts of Foreign Direct Investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. Amongst global investors, the following trends in India’s Foreign Direct Investment are an endorsement destination.
India’s ministry of commerce attracted the 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(the US $ 74.39 billion )
In the financial year 2020 -21, the FDI equity inflow grew by 19% in the F.Y 2020-21 (US $59.64 BILLION). As compared to the last financial year 2019-20 the inflows have gone up from $49.98 billion.
As per the reports of the financial year 2020-21, the top investors of the countries,’ Singapore is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y 2020-21.
Computer Software & Hardware, has emerged as the top sector during F.Y. 2020-21 with around 44% share of the total FDI Equity inflow followed by construction ( Infrastructure) Activities (13%) and Services Sector (8%) respectively.
In terms of investment under the ‘Computer Software & Hardware,’ the major reciptent states are Gujarat (78%), Karnataka (9%), and Delhi (5%) in F.Y.2020-21.
Gujarat is the top recipient stateduring the F.Y .2020-21 with a 37% share of the total FDI equity inflows followed by Maharashtra (27%) and Karnataka (13%).
In Computer Software & Hardware (94%) and construction (Infrastructure )Activities (2%) majority of the equity inflow in Gujarat during the F.Y 2020-21.
The major sectors, namely Construction (Infrastructure ) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals, and electrical Equipment have recorded more than 100% jump in the equity during the F.Y 2020-21 as compared to the last F.Y 2019-20.
Out of the top 10 countries, Saudi Arabia is the top investor in terms of percentage increases during F.Y 2020-21. It invested US$ 2816.08 million reported in the previous F.Y.
227% and 44% increase recorded in FDI equity inflow from the USA & the UK respectively, during the F.Y 2020-21 compared to F.Y 2019-20.