India attracts highest-ever FDI inflow of USD 81.72 billion in FY 2020-21
The top investor country for FY 2020-21 was Singapore, followed by the US and Mauritius
India has attracted its highest-ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21. This is 10% higher than the figure for the last financial year 2019-20 which was US$ 74.39 billion.
Releasing the data on Monday, the Ministry of Commerce and Industry said FDI equity inflow grew by 19% in the F.Y. 2020-21. The figure stood at US$ 59.64 billion compared to FY 2019-20 when it was US$ 49.98 billion.
The top investor countries for FY 2020-21 were Singapore with 29% investment, followed by the U.S.A with 23% and Mauritius at 9%.
Gujarat is the top recipient state during the FY 2020-21 with 37% share of the total FDI Equity inflows followed by Maharashtra (27%) and Karnataka (13%).
A majority of the equity inflow of Gujarat has been reported in the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%).
Major sectors like Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100% jump in equity during the FY 2020-21 as compared to the previous year.
"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," the ministry said.
Under the sector `Computer Software & Hardware’, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.
Saudi Arabia is the top investor in terms of percentage increase during FY 2020-21, investing US$ 2816.08 million in comparison to US$ 89.93 million during the previous financial year.
According to the data, a 227% and 44% increase has been recorded in FDI equity inflow from the USA & the UK respectively during FY 2020-21 compared to FY 2019-20.
The Ministry of Commerce and Industry credited this to the measures 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.
The trends in India’s Foreign Direct Investment are "an endorsement of its status as a preferred investment destination amongst global investors," it said.