NEW DELHI: India has attracted $67.54 billion in Foreign Direct Investment (FDI) during the first nine months of the current financial year 22 per cent higher than the same period last year due to high equity inflows. FDI inflow for the same period of 2019-20 stood at $55.14 billion.
“FDI equity inflow grew by 40 per cent in the first nine months of 2020-21 ($51.47 billion) compared to the year ago period ($36.77 billion),” a statement released by the commerce and industry ministry said on Thursday.
The inflows increased by a substantial 37 per cent in the third quarter (October-December) of 2020-21 to $26.16 billion. In December alone, FDI surged 24 per cent to $9.22 billion, the data showed.
According to the Commerce and Industry ministry, the measures taken by the government on FDI policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country.
Foreign fund inflows are a major driver of economic growth and an important source of non-debt finance for the economic development of India.
“The steps taken in this direction during the last six and a half years have borne fruit, as is evident from the ever-increasing volumes of FDI inflows being received into the country. Continuing on the path of FDI liberalisation and simplification, government has carried out FDI reforms across various sectors,” the ministry statement said.
Meanwhile, officials claimed that the graph will only move forward in the coming months as the government is planning to relax FDI norms for Chinese companies.
This should make way for investments worth about Rs 15,000 crore which is pending for clearance.
“Currently, several proposals are being examined as per the fresh guidelines. The government will clear them on a priority basis in areas like infrastructure, start-ups, among others,” a senior finance ministry official told TNIE.
India had, in April last year, amended the foreign direct investment (FDI) policy and made prior government sanction mandatory for investment from countries sharing a land border with it.