‘FDI Inflow an Endorsement of India as Preferred Investment Destination’

Inflow of foreign direct investments (FDI) are an endorsement of India’s status as a preferred investment destination among global investors, claimed the commerce and industry ministry in a statement on Monday.

FDI into the country grew by 19 per cent to $59.64 billion during 2020-21 on account of measures taken by the government like policy reforms, investment facilitation and ease of doing business, the ministry added.

Total FDI, including equity, re-invested earnings and capital, rose 10 per cent to the “highest ever” of $81.72 billion during 2020-21, against $74.39 billion in 2019-20. “FDI equity inflow grew by 19 per cent in 2020-21 ($59.64 billion), compared to 2019-20 ($49.98 billion),” the ministry said in a statement.

Singapore, with 29 per cent share, was the top investor country during the last fiscal, followed by the US (23 per cent) and Mauritius (9 per cent).

“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,” it said, adding that the inflows are an endorsement of India’s status as a preferred investment destination among global investors.

The computer software and hardware sector attracted highest inflows with around 44 per cent share of the total FDI equity inflows. It was followed by construction (infrastructure) activities (13 per cent) and services sector (8 per cent), respectively.

“Gujarat is the top recipient state during 2020-21 with 37 per cent share of total FDI equity inflows, followed by Maharashtra (27 per cent) and Karnataka (13 per cent),” it added.