India attracted a total foreign direct investment (FDI) inflow of $72.12 billion during April-January (2020-21), the highest ever for the first ten months of a financial year, according to data released by department for promotion of industry and internal trade (DPIIT) showed.
The value is 15 per cent higher as compared to the first ten months of 2019-20 at $62.72 billion. Total FDI inflow also includes reinvested earnings. “The 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,” an official statement said on Monday.
Similarly, India’s FDI equity inflow grew 28 per cent YoY to $54.18 billion during the first ten months of the current fiscal. During the first three quarters of the current fiscal, inbound FDI equity grew by 40 per cent YoY at $51.47 billion, as compared to $36.77 billion, during the same period a year ago.
According to the data shared by the government, Singapore is the top source of FDI in India, with a share of 30.28 per cent of the entire FDI equity inflow. This was followed by the US, with 24.28 per cent and UAE at 7.31 per cent during April-January. DPIIT is expected to share a detailed quarterly data, spelling out sector, country, state and year-wise data next month.
However, in January, Japan topped the list of investor countries to invest in India with 29.09 per cent of the total inbound equity FDI, followed by Singapore at 25.46 per cent and the US at 12.06 per cent.
Computer software and hardware emerged as the top sector during April-January, with 45.81 per cent of the total FDI equity inflow followed by construction or infrastructure-related activities at 13.37 per cent and services sector at 7.80 per cent, respectively.
However, in January, the consultancy services emerged as the top sector with 21.80 per cent of the total FDI equity inflow, followed by computer software and hardware at 15.96 per cent and service sector 13.64 per cent. “These trends in India’s foreign direct investment are an endorsement of its status as a preferred investment destination amongst global investors,” the statement added.
According to a United Nations Conference on Trade and Development report released in January, FDI in India grew by 13 per cent in 2020, led by investments in the digital sector, including e-commerce platforms, data processing services and digital payments., even as fund flows in developed nations such as the US and other European countries plummeted.