FDI jumps 19pc to $59.64B in 2020-21: Commerce ministry
Foreign direct investments (FDI) into the country grew 19 percent to $59.64 billion during 2020-21 on account of measures taken by the Indian government, Union commerce and industry ministry said on Monday.
Total FDI — including equity, re-invested earnings, and capital — rose 10 percent to the "highest-ever" of $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.
"FDI equity inflow grew by 19 percent in 2020-21 ($59.64 billion) compared to 2019-20 ($49.98 billion)," the ministry said in a statement.
In terms of top investor countries, Singapore is at the top with a 29 percent share. It was followed by the US (23 percent) and Mauritius (9 percent) during the last fiscal.
"Measures taken by the government on the fronts of FDI policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country," it said.
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It added that the inflows are an endorsement of India's status as a preferred investment destination among global investors.
The computer software and hardware sector attracted the highest inflows, with around 44 percent share of the total FDI equity inflows. It was followed by construction (infrastructure) activities (13 percent) and services sector (8 percent), respectively.
"Gujarat is the top recipient state during 2020-21 with 37 percent share of the total FDI equity inflows, followed by Maharashtra (27 percent) and Karnataka (13 percent)," it added.
The United Nations Conference on Trade and Development (UNCTAD) had said in a report in January that in 2020, developing nations accounted for 72 percent of global FDI, the highest share on record.
Investments into India recorded positive growth in double digits boosted by investments in the digital sector, while China was the world’s largest FDI recipient in 2020, with flows rising 4 percent to $163 billion, UNCTAD said then.
(Disclaimer: Additional background information has been added to this PTI copy for context)