India’s Foreign Direct Investment (FDI) inflow rose 15 per cent in April-January 2020-21 to $72.12 billion compared to the same period last fiscal. “It is the highest ever for the first ten months of a financial year,” an official release of the Commerce & Industry Ministry circulated on Monday said.

Equity inflow

The trends show that the FDI equity inflow grew by 28 per cent to $54.18 billion in the first ten months of 2020-21, the release stated. FDI inflow includes equity inflows, re-invested earnings and other capital. Japan topped the list of investor countries in India with 29.09 per cent of the total FDI equity inflows during January, 2021. It was followed by Singapore (25.46 per cent) and the US (12.06 per cent).

Sector-wise trend

“The 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....” the statement added.

Amongst sectors, the highest FDI equity during April-January 2020-21 was attracted by computer software & hardware (45.81 per cent) followed by construction (infrastructure) activities (13.37 per cent) and services sector (7.80 per cent) respectively.

As per the trends shown during January, 2021, consultancy services emerged as the top sector with 21.80 per cent of the total FDI Equity inflow followed by computer software & hardware (15.96 per cent) and service sector (13.64 per cent). These trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors, the release said.

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