FDI Inflows grow 62% during first four months of current Financial Year over corresponding period last year

FDI equity inflows +112% over same period

Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:

• India has attracted total FDI inflow of US$ 27.37 billion during first four months of F.Y. 2021-22 which is 62% higher as compared to corresponding period of F.Y. 2020-21 (US$ 16.92 billion).

• FDI equity inflow grew by 112% in the first four months of F.Y. 2021-22 (US$ 20.42 billion) compared to the year ago period (US$ 9.61 billion).

• ‘Automobile Industry’ has emerged as the top sector during the first four months of F.Y. 2021-22 with 23% share of the total FDI Equity inflow followed by Computer Software & Hardware (18%) and Services Sector (10%) respectively.

• Under the sector `Automobile Industry’, majority of FDI Equity inflow (87%) was reported in the state of Karnataka during the first four months of the current financial year (2021-22).

• Karnataka is the top recipient state during the F.Y. 2021-22 (upto July, 2021) with 45% share of the total FDI Equity inflows followed by Maharashtra (23%) and Delhi (12%).

FDI inflows growth follows policy reforms, boosting equity investments concentrated in automobile sector and select states. Foreign Direct Investment inflows rose substantially in the first four months of 2021-22 following measures on FDI policy reforms, investment facilitation and ease of doing business: total FDI inflow increased 62% year on year and FDI equity inflow grew 112%, with the Automobile Industry the top sector and Karnataka the largest recipient state.