India’s FDI Inflow in Fiscal year 2021-22

May 24, 2022

The Ministry of Commerce and Industry said that India’s Foreign Direct Investment [FDI] inflow in the Financial Year 2021-22 reached an all-time high of USD 83.57 billion, despite the Russia-Ukraine war and Covid-19 pandemic. This shows that India’s image is favorable among global investors.

How much is the increase in FDI inflow?

India’s foreign investment inflows increased 20-fold since the financial year 2003-04 when it was mere USD 4.3 billion. Post Covid-19 pandemic, FDI inflow increased by 23%. In the financial year 2020-21, the FDI inflow stood at USD 1.60 billion.

Through the liberal and transparent FDI policy, the Government is ensuring that India remains an attractive and investor-friendly destination. Recently, the government opened several sectors to FDI under the automatic route. Reforms in sectors such as coal, digital media, single-brand retail trading, civil aviation, insurance, telecom, etc. are also encouraging investment in India.

Which sectors received maximum FDI?

In FY 2021-22, the “computer software and hardware” sector with a share of 25% remained the top sector, followed by the services sector and automobile sector. FDI inflow in the manufacturing sectors increased by 76% in 2021-211 as compared to 2020-21.

Which is the top investor country?

In FY 2021-22, Singapore with a share of 27% is the top investor country of FDI equity inflow. Singapore is followed by the U.S. (18%) and Mauritius (16%).

Which state in India received maximum FDI?

Karnataka is the top recipient state with a 38% share of the total FDI Equity inflow, followed by Maharashtra (26%) and Delhi (14%). Karnataka (53%) is also the major recipient of FDI under the domain of “Computer Software and Hardware”. Karnataka is followed by Delhi (17%), and Maharashtra (17%).

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