Highest ever FDI! India sees 10 % jump in FY 21—THESE countries are top contributors

India has attracted the highest ever total FDI (Foreign Direct Investment) inflow of $81.72 billion during the financial year 2020-21, 10 per cent higher as against the last financial year ($74.39 billion). 

Similarly, the FDI equity inflow grew by 19 per cent in FY21, which is around $59.64 billion as against $49.98 billion in the previous year, the data released by the Ministry of Commerce & Industry said. 

The ministry further said, “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.” 

In terms of top investor countries, Singapore is at the number on the list with 29 per cent, followed by the United States with 23 per cent and Mauritius by nine per cent in the last financial year. 

‘Computer Software & Hardware’ has emerged as the top sector with around 44 per cent share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13 per cent) and Services Sector (8 per cent) respectively. 

The major recipient states under the Computer Software & Hardware sector are Gujarat (78 per cent), Karnataka (nine per cent) and Delhi (five per cent) in the last fiscal. 

Gujarat is the top recipient state, overall, during FY21 with a 37 per cent share of the total FDI equity inflows, followed by Maharashtra with 27 per cent and Karnataka 13 per cent. 

The major sectors, namely Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100 per cent jump in equity during FY21 as compared to the previous year. 

Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase in the fiscal with an investment of $2816.08 million versus $89.93 million reported in the previous financial year.