At $83.57 billion, India reports 'highest-ever' FDI inflow in FY22

India attracted total foreign direct investments (FDI) inflow of $83.57 billion in the financial year 2021-22, up by 1.95 per cent on-year, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Friday.

Total FDI includes equity capital of unincorporated bodies, reinvest earnings and other capital.

During the entire 2020-21 financial year, the total FDI inflow was $81.72 billion, despite the disruption caused by the outbreak of the pandemic last year.

“India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector. FDI equity inflow in manufacturing sectors has increased by 76 per cent in FY2021-22 ($21.34 billion) compared to previous FY2020-21 ($12.09 billion). The following trends in India’s foreign direct investment inflow are an endorsement of its status as a preferred investment destination amongst global investors,” an official statement said.

DPIIT did not release the FDI equity inflow data for FY22.

According to the data shared by the government, Singapore is the top investing country with 27 per cent of the equity inflows. This is followed by the US with inflows at 21 per cent and Mauritius that continued to remain one of the top sources of FDI for India at 16 per cent inflows in FY22.

 As far as states are concerned, Karnataka is the top recipient state for yet another year with 38 per cent share of the total FDI equity inflows, followed by Maharashtra at 26 per cent and Delhi at 14 per cent.

Majority of equity inflow of Karnataka has been reported in the sectors — computer software and hardware, with a share of 35 per cent of the total FDI equity inflow. For the automobile industry it was 20 per cent and 12 per cent in case of education during FY22.