India’s Foreign Direct Investment (FDI) inflow increased 10 per cent in 2020-21 (year-on-year) to touch the highest ever level of $81.72 billion with Singapore, the US and Mauritius topping the list of investor countries.
FDI equity inflow grew by 19 per cent in 2020-21 to $59.64 billion compared to the previous fiscal, according to an official release issued by the Commerce & Industry Ministry on Monday.
“Measures taken by the government on the fronts of the FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors,” the release said. Total FDI includes equity, reinvested earnings and other capital.
In 2019-20, FDI inflows posted a higher growth of 20 per cent to $74.39 billion as most of the year was free from the effect of the Covid-19 pandemic.
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States & nation stats
Singapore, which was the top investing country in 2020-21, accounted for 29 per cent of the total FDI inflow into India, followed by the US with 23 per cent share and Mauritius with 9 per cent share.
Gujarat was the top FDI recipient State during the fiscal with 37 per cent share of the total FDI equity inflows followed by Maharashtra with 27 per cent and Karnataka with 13 per cent, as per the release.
Computer software & hardware was the top sector during the fiscal attracting about 44 per cent of the total FDI equity inflow followed by construction (infrastructure) activities accounting for 13 per cent and services sector attracting 8 per cent of the inflows.
Gujarat attracted the bulk of FDI (78 per cent) that came into the computer, software & hardware sector followed by Karnataka (9 per cent) and Delhi (5 per cent) in 2020-21.
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Major sectors such as construction activities, computer, software & hardware, rubber goods, retail trading, drugs & pharmaceuticals and electrical equipment recorded more than 100 per cent jump in equity during 2020-21 as compared to the previous year.
Of the top ten investor countries, Saudi Arabia recorded the highest percentage increase in FDI flow to $2.81 billion in 2020-21 in comparison to $89.93 million reported in the previous financial year.

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