FDI inflow hits all-time high of USD 83.57 billion in 2021-22

FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 (USD 21.34 billion) compared to 2020-21 (USD 12.09 billion).

Published: 20th May 2022 04:48 PM  |   Last Updated: 21st May 2022 12:33 AM   |  A+A-

Cash; Capital; investment

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NEW DELHI: Total foreign direct investment into India rose 2 per cent to the "highest ever" USD 83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government, the commerce and industry ministry said on Friday.

Total FDI comprises equity inflows, reinvested earnings and other capital.

In 2020-21, the inflow stood at USD 81.97 billion.

It was USD 74.39 billion in 2019-20 and USD 62 billion in 2018-19.

"India has recorded the highest ever annual FDI inflow of USD 83.57 billion in 2021-22," the ministry noted in a statement.

It said that the foreign inflows are increasing despite challenges like a military operation in Ukraine and COVID-19 pandemic.

These inflows have increased 20-fold since 2003-04 when the inflows were USD 4.3 billion only, it added.

The ministry also informed that FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 (USD 21.34 billion) compared to 2020-21 (USD 12.09 billion).

FDI equity inflows stood at USD 58.77 billion in 2021-22 against USD 59.64 billion in 2020-21.

The ministry said that in terms of top investor countries, Singapore is at the top with a 27 per cent share, followed by the US (18 per cent) and Mauritius (16 per cent) during the last fiscal.

These trends "are an endorsement of its status as a preferred investment destination amongst global investors," the ministry added.

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Among sectors, computer software and hardware attracted maximum inflows.

It was followed by the services sector and automobile industry.

Karnataka is the top recipient state with a 38 per cent share of the total FDI equity inflow reported during 2021-22 followed by Maharashtra (26 per cent) and Delhi (14 per cent), according to the statement.

"The steps taken by the government during the last eight years have borne fruit as is evident from the ever-increasing volumes of FDI inflow being received into the country, setting new records," it said.

The government has put in place a liberal and transparent policy for foreign investments, wherein most of the sectors are open to FDI under the automatic route.

"To further liberalise and simplify FDI policy for providing ease of doing business and attract investments, reforms have been undertaken recently across sectors, such as coal mining, contract manufacturing, digital media, single-brand retail trading, civil aviation, defence, insurance and telecom," it added.

Commenting on the figures, Abhishek Guha, Partner, M&A, Private Equity, Shardul Amarchand Mangaldas & Co, said that the last financial year has seen significant deal flow and foreign direct investment in the manufacturing, IT and pharmaceutical sectors and this trend seems to continue in the current year.


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