FDI Inflow in 2020-21 in India

What is the News?

The Ministry of Commerce released the data on the FDI (Foreign Direct Investment Inflow) in India for the Financial Year 2020-21.

Key Highlights from the Data:
  • Firstly, India has received an FDI of $81.72 billion during the financial year 2020-21. This is 10% higher than $74.39 billion received in 2019-20.
  • Secondly, the Largest Source of FDI: Singapore remained the largest source of FDI in India for the third consecutive year with a share of 29%. It was followed by the US with a 23% share and Mauritius with 9%.
  • Thirdly, Saudi Arabia is the top investor in terms of percentage increase during FY21. It invested $2.8 billion in comparison to US$ 89.93 million reported in 2019-20.
  • Fourthly, States: Gujarat was the top recipient of FDI among states with a 37% share of total FDI equity inflows. It was followed by Maharashtra and Karnataka with 27% and 13%.
  • Sectors: Computer software and hardware emerged as the top sector in FY21 with around 44% of the total FDI equity inflow. It was followed by construction and infrastructure-related activities at 13% and services sector with 8%.
About Foreign Direct Investment(FDI):
  • Firstly, Foreign Direct Investment(FDI) is the medium for acquiring ownership of assets in one country (the home country) by residents of other countries.
  • Secondly, FDI may result in control of the production, distribution, and other activities in a firm in the host country.
  • Thirdly, FDI is considered a major source of non-debt financial resources for economic development.

Source: The Hindu


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