The FDI inflows in the country have witnessed a 15% increase in the past 10 months of the last fiscal as compared to the same period in 2019-20. Singapore, the USA and the UAE are the top three contributors in overall FDI inflows. The most FDI has come for the computer software and hardware sector as it saw nearly 50 per cent of total inflows.
The government said the increase has happened because of the measures in form of FDI reforms, investment facilitation and ease of doing business. According to the government, an inflow of US$ 72.12 billion was witnessed from April 2020 to January 2021.
“It is the highest ever for the first ten months of a financial year and 15% higher as compared to the first ten months of 2019-20 (US$ 62.72 billion). The trends show that the FDI equity inflow grew by 28% in the first ten months of the financial year 2020-21 (US$ 54.18 billion) compared to the year-ago period (US$ 42.34 billion),” commerce ministry officials said.
In terms of top investor countries, Singapore is the main contributor with 30.28% of the total FDI equity inflow followed by the U.S.A (24.28%) and the UAE (7.31%) for the first ten months of the current year 2020-21. Interestingly, Japan has been leading the list of investor countries to invest in India with 29.09% of the total FDI equity inflows during January, 2021, followed by Singapore (25.46%) and the U.S.A. (12.06%).
The main FDI has come for the 'computer software & hardware' sector during the first ten months of the financial year 2020-21 as it cornered 45.81% of the total FDI Equity inflow followed by construction (infrastructure) activities (13.37%) and services sector (7.80%) respectively.
However, for January, 2021, consultancy services emerged as the top sector with 21.80% of the total FDI equity inflow followed by computer software and hardware (15.96%) and the service sector (13.64%).
“These trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination among global investor,” the official statement said.
