The total foreign direct investment (FDI) inflow to India grew 90 per cent year-on-year to $22.53 billion during the first three months of the ongoing financial year. The FDI inflow was at $11.84 billion during April-June period of 2020.
Meanwhile, the total FDI equity inflow rose 168 per cent to $17.57 billion during the first three months of FY22 from $6.56 billion in the year-ago period, the Commerce and Industry Ministry said in a release.
The automobile industry got the highest equity FDI inflow during the three months, with the share of the sector in total FDI equity inflow being at 27 per cent. It was followed by computer software and hardware with 17 per cent share and services sector with 11 per cent share.
"Under the sector 'automobile industry', majority of FDI equity inflow (88 per cent) was reported in the state of Karnataka during the first three months of the current financial year (2021-22)," the release said.
Karnataka was the top recipient state till June in FY22 with 48 per cent share of the total FDI equity inflows, followed by Maharashtra (23 per cent) and Delhi (11 per cent).
The ministry attributed the increase in FDI inflows to measures taken by the government like FDI policy reforms, investment facilitation and improvement in ease of doing business.
The trends in FDI are an endorsement of India's status as a preferred investment destination amongst global investors, it said.
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