ECONOMY
India attracted highest ever total FDI inflow during 2020-21
- IBJ Bureau
- May 25, 2021

Despite
Covid pandemic India has received increased Foreign Direct Investment (FDI)
inflows into the country during the last financial year. The country has
attracted highest ever total FDI inflow of US$ 81.72 billion during the
financial year 2020-21 and it is 10 % higher as compared to the last financial
year 2019-20 (US$ 74.39 billion). FDI equity inflow grew by 19% in the FY
2020-21 (US$ 59.64 billion) compared to the previous year FY 2019-20 (US$ 49.98
billion).
In
terms of top investor countries, Singapore is at the apex with 29%, followed by
the USA (23%) and Mauritius (9%) for the FY 2020-21. Gujarat emerged as the
top recipient State during the financial year with 37% share of the total FDI equity
inflows followed by Maharashtra (27%) and Karnataka (13%).
Sector-wise,
computer software & hardware has emerged as the top sector during FY
2020-21 with around 44% share of the total FDI equity inflow followed by construction
(Infrastructure) activities (13%) and services sector (8%) respectively.
The
major sectors, namely construction (Infrastructure) activities, computer software
& hardware, rubber goods, retail trading, drugs & pharmaceuticals and electrical
equipment have recorded more than 100% jump in equity during the FY 2020-21 as
compared to the previous year.
Out
of top 10 countries, Saudi Arabia is the top investor in terms of percentage
increase during FY 2020-21. It invested US$ 2816.08 million in comparison to
US$ 89.93 million reported in the previous financial year. 227% and 44%
increase recorded in FDI equity inflow from the USA and the UK respectively,
during the FY 2020-21 compared to FY 2019-20.
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