FDI inflow data released. What you should know?
AMAN GUPTA
NEW DELHI, June 24
Recently, Department for Promotion of Industry and Internal Trade released the Quarterly Fact Sheet on FDI. It showed India had received highest ever Total FDI inflow in a financial year in the financial year 2021-22 at $ 83,572 Million. Maharashtra received the highest FDI inflow among states and Singapore was the biggest source of FDI inflow to India.
What does the report show?
The report shows that total FDI inflow for the financial year 2021-2022 stood at USD 83,572 Million compared to USD 81,973 Million in FY 2020-2021. This is the highest ever total FDI inflow in the country. The data shows total FDI inflows in the country has grown almost 20 times in the last 22 years from USD 4,029 Million to USD 83,572 Million. Government says this is proof that India is rapidly emerging as the preferred investment destination in the world.
Which states attracted the highest FDI inflow?
Since 2019, Maharashtra has attracted the highest FDI, 28 percent of the total FDI inflow, followed by Karnataka Gujarat and Delhi at 24, 19 and 12 percent respectively.
In the FY 2022, Gujrat received the highest FDI inflow at USD 22,072 Million followed by Maharashtra, Delhi and Tamil Nadu. Maharashtra and Delhi were the highest sources of FDI inflow, with a combined FDI inflow of USD 37,511 Million, Accounting for almost 64 percent of the FDI inflow.
Which countries Contributed most in India’s FDI inflow?
India received highest FDI inflow from Singapore followed by USA and Mauritius. While FDI from Singapore and US fell from USD 17,419 Million to USD 14,878 Million and from USD 13,823 Million to 10,549 USD respectively, FDI from Mauritius increased from USD 5,639 Million to USD 9,392 Billion. Mauritius and Singapore have been major sources of FDI inflow to India since the 2000s, accounting for 27 percent and 22 percent of total inflow respectively.
Which sector attracted the highest inflow?
Computer Software and hardware sector attracted the highest FDI inflow standing at USD 2 14,461 Million, accounting for almost 25 percent of the total FDI inflow. Services sector stood at a distant second at USD 7,131 Million. Other major sectors included Trading and Construction. Combined Computer, Service and Trading sector contributed almost 45 percent of FDI inflow.
How does India rank in comparison to other countries?
According United Nations Conference on Trade and Development’s ‘World Investment Report 2022’, India ranked 7th in the list of top economies in terms of FDI inflow. According to the report, India’s FDI inflow dropped from USD 64 billion in 2020 to USD 45 Million in 2021. The rankings were topped by US, followed by China and Hong Kong.
What is FDI?
Foreign Direct Investment (FDI) is when a foreign entity makes investment in another country. FDI can either come directly through the company or through the stock market.
Why is FDI important?
FDI means more investment in a country but it is not just limited to investment in form of dollars but also includes technology transfers. For any developing country to grow there is a need of new and better technologies and investment. FDI helps meet both these requirements.
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