In 2021, India got 516% more FDI equity investment into the R&D industry than in 2020

India attracted USD 343.64 million in FDI equity inflow into the Research & Development (R&D) sector in the calendar year 2021 (CY 2021).

This is a 516% increase from the figure for the previous CY 2020 (USD 55.77 million), according to data released by the Ministry of Commerce & Industry on Tuesday.

Karnataka, followed by Telangana and Haryana, received the most FDI equity in R&D during CY 2021.

Telangana, Karnataka, Haryana, Andhra Pradesh, and Tamil Nadu were among the states that had growth of more than 250% during CY 2021 in comparison to C.Y. 2020, the ministry said.

With 40% of all FDI equity in R&D, Singapore leads the world in terms of R&D investments in India during C.Y. 2021, followed by Germany (35%), and the United States (11%). Additionally, FDI equity inflow from a number of nations like Germany, Mauritius, France, Singapore, Oman, and the United States of America increased by more than 200% from the previous calendar year 2020.

With a 35% share of the overall FDI equity in R&D during CY 2021, Daimler Truck Innovation Center was the top beneficiary company of FDI equity inflow, followed by Aragen Life Sciences Private Limited (34%) and Stelis Biopharma Private Limited (21%).

These patterns point to a healthy and expanding research and development industry, which would help the economy by fostering innovation and raising productivity, both of which would result in faster economic development, the Ministry of Commerce and Industry said.

Foreign Direct Investment (FDI) is permitted under 100% automatic route in the R&D sector subject to applicable laws/regulations, security and other conditionalities.
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