News Delhi- India attracted, for the first time, the highest total Foreign Direct Investment (FDI) of US $81.72 Bn during the financial year 2020-21, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Monday.
FDI equity grew by 19% year-on-year (YOY) in the FY2020-21 (US$59.64 billion) compared to the previous financial year 2019-20 (US$49.98 billion).
Despite the disruption caused by the COVID-19 pandemic, India attracted the highest FDI inflow ever, which includes reinvested earnings, the equity capital of unincorporated bodies, and others.
“Measures taken by the Government on the fronts of Foreign Direct Investment Policy reforms, investment, and ease of doing business have resulted in increased FDI inflows into the country,” an official statement said.
In terms of the top investors, Singapore remained the largest source of FDI for the third year in a row, with 29% of shares, followed by the USA 23% and Mauritius with 9%, respectively, according to the data shared by the Government.
“One of the top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during the financial year 2021. It Invested $2.8 billion in comparison to $89.93 million in the previous financial year,”- the official said.
According to the Government report, Gujarat was the top recipient of FDI with 37% of total FDI equity inflows among other states, followed by Maharashtra 37% and Karnataka 27%, respectively.
Gujarat attracted the lion’s share of inbound FDI under the computer software and hardware sector at 78%, followed by Karnataka and Delhi by 9% and 5%, respectively.
“Majority of the equity inflows in Gujarat has been reported in the sectors ‘Computer Software & Hardware’ at 94% and Construction (Infrastructure) activities at 2% during the FY2021”, the statement said.
According to the Government report, computer software and hardware emerged as the top sector in FY21, with around 44% of the total FDI equity inflow. This is followed by the construction and infrastructure sector and services sector at 13% and 8%, respectively.