PIB | 19 Jul, 2022
India
attracted USD 343.64 million FDI equity inflow in R&D sector during
C.Y. 2021 (Calendar Year) which is 516% higher as compared to previous
C.Y. 2020 (USD 55.77 million).
FDI is permitted under 100% automatic
route in R&D sector subject to applicable laws/regulations, security
and other conditionalities.
Karnataka
is the top FDI Equity recipient state in R&D during C.Y. 2021
followed by Telangana and Haryana.
Singapore
is the top investing country in R&D during C.Y. 2021 with 40% share
of total FDI Equity in R&D followed by Germany (35%) and U.S.A
(11%). Further, FDI Equity inflow from several countries like Germany,
Mauritius, France, Singapore, Oman and U.S.A. showed an increase of more
than 200% as compared to previous C.Y. 2020.
Daimler
Truck Innovation Center was the top FDI Equity inflow recipient company
in R&D during C.Y. 2021 with 35% share of total FDI Equity in
R&D followed by Aragen Life Sciences Private Limited (34%) and
Stelis Biopharma Private Limited (21%).
These
trends indicate a robust and growing R&D sector which would benefit
the economy by driving innovation, increasing productivity, thereby
leading to higher economic growth.
Research
and Development (R&D) plays an important role in the development of
a knowledge-based economy that can pave the way for higher economic
growth.
Foreign Direct Investment (FDI) infuses long term sustainable
capital in the economy and contributes towards technology transfer,
development of strategic sectors, greater innovation, competition and
employment creation amongst other benefits.
It has been a continuous
endeavor of the Government to attract and promote R&D intensive FDI
in order to supplement domestic capital, technology and skills for
accelerated economic growth and development.