REVEALED! What gave a massive 400% jump to FDI in computer software, hardware during Apr-Dec 2020

It's a massive jump in Foreign direct investments (FDI) in the computer software and hardware sector! According to the latest data from Department for Promotion of Industry and Internal Trade (DPIIT), FDI in the computer software and hardware sector jumped nearly four-times to USD 24.4 billion during April-December 2020-21.

FDI: 2020 vs 2019

While in the year-ago period the sector received USD 6.4 billion FDI, the entire 2019-20 saw overseas investment of USD 7.7 billion, the DPIIT data showed.

What led to 400% jump?

According to experts, the accelerated digitalisation and increased use of artificial intelligence due to the pandemic led work-from-home scenario have all resulted in a huge opportunity for the computer software and hardware sector.

The other sectors which recorded significant growth in foreign inflows during the nine-month period of 2020-21 include construction (infrastructure) activities (USD 7.2 billion), and pharmaceuticals (USD 1.24 billion).

FDI in telecommunication dipped to USD 357 million from USD 4.3 billion during April-December 2019-20. Automobiles too witnessed a slowdown with USD 1.18 billion in April-December 2020-21 as against USD 2.5 billion in the same period of the previous fiscal.

Further, during April-December 2020-21, India attracted maximum FDI from Singapore (USD 15.71 billion) followed by the US (USD 12.82 billion), the UAE (USD 3.91 billion), Mauritius (USD 3.47 billion), and Cayman Islands (USD 2.53 billion).

Overall FDI equity inflows into the country jumped 40 per cent to USD 51.47 billion.