Trend on Foreign Direct Investment(FDI) in India

Source: The post is based on the article Trend on Foreign Direct Investment(FDI) in Indiapublished in PIB on 28th July 2022.

What is the News?

This article talks about the trends in Foreign Direct Investment(FDI) into India.

What is the trend in FDI inflows into India in FY 21-22?

FDI Inflows: India has received the highest annual FDI inflows of USD 84 billion in FY 21-22 overtaking last year’s FDI by USD 2.87 billion. 

Source of FDI: Singapore (27.01%) and the USA (17.94%) have emerged as the top 2 sourcing nations in FDI equity flows into India in FY 2021-22 followed by Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%). 

Top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 are Computer Software & Hardware, Services Sector, Automobile Industry, Trading and Construction (Infrastructure) Activities.

Top 5 States receiving the highest FDI Equity Inflow during FY 2021-22 are: Karnataka, Maharashtra, Delhi, Tamil Nadu and Haryana.

As per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global trends in FDI inflows, India has improved one position to 7th rank among the top 20 host economies for 2021.

India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector. FDI Equity inflow in Manufacturing Sectors has increased by 76% in FY 2021-22 compared to the previous FY 2020-21.

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