Foreign direct investment (FDI) inflows from April to November 2020 have increased by 22 percent (YoY) to $58.37 billion - the highest for the first 8 months of any fiscal, the Ministry of Commerce and Industry on January 27 said.
FDI equity inflows in the first eight months of FY21 rose by 37 percent (YoY) to $43.85 billion, said the Union Ministry statement said.
"During April to November, 2020, total FDI inflow of US$ 58.37 billion has been received. It is the highest ever for first 8 months of a financial year and 22% higher as compared to first 8 months of 2019-20 (US$ 47.67 billion)," the Union Ministry said in its official statement.
FDI in India rose by 13% in 2020, as inflows declined in major economies due to pandemic: UN
Apart from this, the FDI equity inflows received during April-November 2020, rose by 37 percent (Y-o-Y) to $43.85 billion. This is the highest FDI inflows in April-November for the first 8 months of any fiscal. It was US$ 32.11 billion in April to November, 2019-20.
Stating the reason for the increase in the FDI inflows, the Centre stated that it is due to the measure taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business.
Earlier on Sunday, the United Nations had said that FDI into India rose by 13 percent in 2020, boosted by interest in the digital sector. It added that fund flows "declined most strongly" in major economies such as the UK, the US and Russia due to the COVID-19 pandemic, India and China bucked the trend.
The United Nations Conference on Trade and Development (UNCTAD) on Sunday issued an 'investment trends monitor' stating that global FDI collapsed in 2020 by 42 percent to an estimated $859 billion from $1.5 trillion in 2019. It also mentioned that such a low was last seen in the 1990s and is more than 30 per cent below the investment trough that followed the 2008-2009 global financial crisis.
In its report, the UNCTAD said FDI in South Asia rose by 10 per cent to $65 billion, while FDI in India rose by 13 percent, boosted by investments in the digital sector. It added, 13 percent rise in FDI saw the total foreign investments for 2020 touching $57 billion and noted that acquisitions in India’s digital economy was the largest contributor to this rise.