1 June , 2022 Fdiindia
In 2021-2022, India Reported the Highest FDI Inflow of $83 Billion: Centre
India had reported the highest foreign direct investment (FDI inflow) of $83.57 billion for the fiscal year 2021-2022, according to the Ministry of Commerce and Industry, adding that the country's FDI inflows had increased 20-fold since the fiscal year 2003-04, when it recorded only $4.3 billion.
Despite the Ukraine war and the Covid-19 pandemic, the figures for 2021-22 have surpassed the previous fiscal year by $1.60 billion, according to the ministry. According to the government, FDI inflows into the manufacturing sector increased by 76% in the previous fiscal year ($21.34 billion) compared to $12.09 billion in 2020-21.
According to the data, FDI inflows increased by 23% following the Covid pandemic, with inflows totaling $171.84 billion from March 2020 to 2022, compared to $141.10 billion from February 2018 to 2020.
Singapore topped the list of top contributors to India's FDI inflows, accounting for 27%, followed by the United States (18%) and Mauritius (16%).
The computer software and hardware sector remained the top recipient of FDI inflows, accounting for approximately 25% of total inflows, followed by the services sector and the automobile sector, which each received 12%.
According to government data, Karnataka (53%) received the most FDI inflows in the computer hardware and software sector, followed by Delhi (17%) and Maharashtra (17%).
Karnataka is the top recipient state, accounting for 38% of total FDI equity inflows reported during the previous fiscal year, followed by Maharashtra (26%) and Delhi (3%). (14 percent).
During the fiscal year 2021-22, the majority of Karnataka's equity inflows were reported in the sectors of Computer Software & Hardware (35 percent), 'Automotive Industry' (20 percent), and 'Education' (12 percent).
The government has attributed the high inflow to policies implemented over the last eight years. "The government reviews the FDI policy on an ongoing basis and makes significant changes from time to time to ensure that India remains an attractive and investor-friendly destination," the ministry said, adding that the government has implemented a liberal and transparent FDI policy with most sectors open to FDI through the automatic route.
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