India attracted highest-ever FDI inflow of $81.72 billion during FY2020-21

FDI | Representative image

The Ministry of Commerce on May 24 said the country attracted the highest-ever total foreign direct investment (FDI) inflow of $81.72 billion during 2020-21, which is 10 percent higher as compared to the financial year 2019-20, when inflows touched $74.39 billion.

"Measures taken by the government on the fronts of foreign direct investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country," the government statement said.

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Apart from this, the government said that in the FY 2020-21, the FDI equity inflow grew by 19 percent to $59.64 billion compared to the previous year, when inflows were $49.98 billion.

The top investors include Singapore (29 percent), the USA (23 percent) and Mauritius (9 percent) for the FY 2020-21. ‘Computer software and hardware’ emerged as the top sector with around 44 percent share of the total FDI equity inflow followed by construction (infrastructure) activities (13 percent) and services sector (8 percent) respectively, the statement added.

The states that received FDI in computer software and hardware include Gujarat (78 percent), Karnataka (9 percent) and Delhi (5 percent). Of the total FDI equity inflows, Gujarat emerged as the top recipient state during the FY 2020-21 with 37 percent share, followed by Maharashtra (27 percent) and Karnataka (13 percent).

On the list of top 10 countries, Saudi Arabia became the biggest investor in terms of percentage increase during FY 2020-21, as it invested $2816.08 million in comparison to $89.93 million reported on a Y-o-Y basis. Other countries include the USA and the UK, which increased their share in FDI equity inflow by 227 percent and 44 percent during the FY 2020-21 compared to FY 2019-20.