SME Times News Bureau | 20 May, 2022
has recorded highest ever annual FDI inflow of USD 83.57 billion in the
Financial Year 2021-22. In 2014-2015, FDI inflow in India stood at mere
45.15 USD billion as compared to the highest ever annual FDI inflow of
USD 83.57 billion reported during the financial year 2021-22 overtaking
last year’s FDI by USD 1.60 billion despite military operation in
Ukraine and COVID-19 pandemic.
India’s FDI inflows have increased
20-fold since FY03-04, when the inflows were USD 4.3 billion only.
India is rapidly emerging as a preferred country for foreign
investments in the manufacturing sector. FDI Equity inflow in
Manufacturing Sectors have increased by 76% in FY 2021-22 (USD 21.34
billion) compared to previous FY 2020-21 (USD 12.09 billion).
following trends in India’s Foreign Direct Investment inflow are an
endorsement of its status as a preferred investment destination amongst
may be noted that FDI inflow has increased by 23% post-Covid (March,
2020 to March 2022: USD 171.84 billion) in comparison to FDI inflow
reported pre-Covid (February, 2018 to February, 2020: USD 141.10
billion) in India.
terms of top investor countries of FDI Equity inflow, ‘Singapore’ is at
the apex with 27%, followed by U.S.A (18%) and Mauritius (16%) for the
FY 2021-22.‘Computer Software & Hardware’ has emerged as the top
recipient sector of FDI Equity inflow during FY 2021-22 with around 25%
share followed by Services Sector (12%) and Automobile Industry (12%)
the sector `Computer Software & Hardware’, the major recipient
states of FDI Equity inflow are Karnataka (53%), Delhi (17%) and
Maharashtra (17%) during FY 2021-22.
Karnataka is the top recipient
state with 38% share of the total FDI Equity inflow reported during the
FY 2021-22 followed by Maharashtra (26%) and Delhi (14%). Majority of
the equity inflow of Karnataka has been reported in the sectors
`Computer Software & Hardware’ (35%), Automobile Industry (20%) and
`Education’ (12%) during the FY 2021-22.
steps taken by the Government during the last eight years have borne
fruit as is evident from the ever-increasing volumes of FDI inflow being
received into the country, setting new records.
The Government reviews
the FDI policy on an ongoing basis and makes significant changes from
time to time, to ensure that India remains attractive and investor
friendly destination. Government has put in place a liberal and
transparent policy for FDI, wherein most of the sectors are open to FDI
under the automatic route.
To further liberalise and simplify FDI policy
for providing Ease of doing business and attract investments, reforms
have been undertaken recently across sectors such as Coal Mining,
Contract Manufacturing, Digital Media, Single Brand Retail Trading,
Civil Aviation, Defence, Insurance and Telecom.