India has recorded highest ever annual FDI inflow of USD 83.57 billion in the Financial Year 2021-22.
In 2014-2015, FDI inflow in India stood at mere 45.15 USD billion as compared to the highest ever annual FDI inflow of USD 83.57 billion reported during the financial year 2021-22 overtaking last year's FDI by USD 1.60 billion despite military operation in Ukraine and COVID-19 pandemic. India's FDI inflows have increased 20-fold since FY03-04, when the inflows were USD 4.3 billion only.
In a statement on Friday (20 May), the Ministry of Commerce and Industry said that FDI Inflows in FY22 increased despite "military operation in Ukraine and COVID-19 pandemic". It may be noted that FDI inflow has increased by 23 per cent post-Covid i.e., March 2020 to March 2022 at $171.84 billion in comparison to FDI inflow reported pre-Covid i.e., February 2018 to February 2020 at $141.10 billion.
The ministry added that India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector.
"FDI Equity inflow in Manufacturing Sectors have increased by 76 per cent in FY 2021-22 ($21.34 billion) compared to previous FY 2020-21 ($12.09 billion)," the ministry said.
"The steps taken by the Government during the last eight years have borne fruit as is evident from the ever-increasing volumes of FDI inflow being received into the country, setting new records," added the ministry.
In terms of top investor countries of FDI Equity inflow, ‘Singapore’ is at the apex with 27 per cent, followed by USA (18 per cent) and Mauritius (16 per cent) for the FY 2021-22.
‘Computer Software & Hardware’ has emerged as the top recipient sector of FDI Equity inflow during FY 2021-22 with around 25 per cent share followed by Services Sector (12 per cent) and Automobile Industry (12 per cent) respectively.
Under the sector `Computer Software & Hardware’, the major recipient states of FDI Equity inflow are Karnataka (53 per cent), Delhi (17 per cent) and Maharashtra (17 per cent) during FY 2021-22, the ministry said.
Karnataka is the top recipient state with 38 per cent share of the total FDI Equity inflow reported during the FY 2021-22 followed by Maharashtra (26 per cent) and Delhi (14 per cent).
According to the ministry, majority of the equity inflow of Karnataka has been reported in the sectors `Computer Software & Hardware’ (35 per cent), Automobile Industry (20 per cent) and `Education’ (12 per cent) during the FY 2021-22.
Image source: Newsroom Post