Despite the COVID-19 pandemic, India witnessed a 10 percent rise in Foreign Direct Investment (FDI) in FY 2021 compared to last financial year (FY) 2020. India attracted highest investments from Singapore.
Gujarat is the top recipient state during the FY 2020-21 with 37 percent share of the total FDI Equity inflows, followed by Maharashtra (27 percent) and Karnataka (13 percent). Maharashtra maintains its second spot as against Karnataka.
According to the Economic Survey for 2019-20, Karnataka received FDI worth Rs 32,431 crore against Rs 25,316 crore in Maharashtra, followed by Rs 24,012 crore in Gujarat.
Majority of the equity inflow of Gujarat has been reported in the sectors like Computer Software & Hardware (94 percent) and Construction (Infrastructure) Activities (2 percent) during the FY 2020-21.
The commerce and industry ministry attributed this rise to the measures taken by the government in FDI policy reforms, investment facilitation and ease of doing business.
India attracted 29 percent of the total FDI from Singapore, it is largest source of FDI for India, followed by the United States (23 percent) and Mauritius (9 per cent ) for the FY 2020-21, the ministry stated.
"India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10 percent higher as compared to the last financial year 2019-20 ($ 74.39 billion)," stated the ministry.
In addition, FDI equity inflow grew by 19 percent in the FY 2020-21 ($ 59.64 billion) compared to the previous year FY 2019-20 ($ 49.98 billion).
'Computer Software & Hardware’ emerged as the top sector, by attracting 44 per cent of the total FDI equity inflow during FY 2020-21. The second largest sector is Construction (Infrastructure) Activities (13 percent), followed by Services Sector (8 percent) respectively.
Under the sector Computer Software & Hardware, the major recipient states are Gujarat (78 percent), Karnataka (9 percent) and Delhi (5 percent) in FY 2021, the Ministry claimed.
Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during FY 2020-21. It invested $2,816.08 million in comparison to $89.93 million reported in the previous financial year.
In percentage terms, there has been 227 percent and 44 percent increase recorded in FDI equity inflow from the USA and the UK respectively, during the FY 2020-21 compared to FY 2019-20.
The major sectors, namely Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100 percent jump in equity during the FY 2020-21 as compared to the previous year.