FDI equity inflows into India decline 60% in Q1 to $6.56 bn: DPIIT

Foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) during April-June 2020, according to data by the Department for Promotion of Industry and Internal Trade (DPIIT).

The overseas inflows during April-June 2019 stood at $16.33 billion.

Sectors which attracted foreign inflows during the first quarter of 2020-21 included services ($1.14 billion), computer software and hardware ($1.06 billion), telecommunications ($2 million), automobile ($326 million) and trading ($426 million), the data showed.

Singapore emerged as the largest source of FDI in India during the first quarter of the fiscal with $1.82 billion investments. It was followed by the Netherlands ($1.08 billion), Mauritius ($900 million), the US ($640 million), and Japan ($412 million).

During the period, states which attracted FDI included Maharashtra, Karnataka, Delhi, Gujarat and Jharkhand.

Total FDI inflows, which include re-invested earnings, stood at $11.51 billion during the first quarter of this fiscal.

FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth.