In a pandemic-ravaged year, India managed to rake in the highest ever foreign direct investment during financial year 2020-21 at $81.72 billion, the Ministry of Commerce and Industry announced on Monday. This happens to be 10 per cent higher than $74.39 billion in the previous fiscal, the ministry further added.
"Measures taken by the government on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country," a ministry statement read.
FDI equity inflow increased 19 per cent during FY21 to $59.64 billion, as against $49.98 billion in FY20, the government stated. Singapore was the biggest investor in India last fiscal, accounting for 29 per cent FDI, followed by the United States at 23 per cent and Mauritius at 9 per cent.
Out of top 10 countries, Saudi Arabia was the top investor in terms of percentage increase during FY21. It invested $2,816.08 million in comparison to $89.93 million reported in the previous financial year.
Among states, Gujarat received the highest FDI at 37 per cent of the total equity inflows. Maharashtra and Karnataka had the second and third highest flow at 27 per cent and 13 per cent, respectively.
Computer software and hardware segment received the most FDI in FY21, accounting for 44 per cent of total FDI equity inflow. Construction (infrastructure) activities and services sector followed with 13 per cent and 8 per cent share, respectively. The US and UK reported 227 per cent and 44 per cent year-on-year increase in FDI in India during FY21.
Under computer software and hardware segment, the major recipient states during the fiscal under review were Gujarat at 78 per cent, Karnataka at 9 per cent and Delhi at 5 per cent.
The major sectors, namely construction (infrastructure) activities, computer software and hardware, rubber goods, retail trading, drugs and pharmaceuticals, and electrical equipment, have recorded more than 100 per cent jump in equity during the FY21 as compared to the previous year, the ministry said.
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