Foreign direct investment (FDI) into India grew by 15 per cent to USD 30 billion during the first half of the current fiscal, according to official data. Inflow of FDI during April-September 2019-20 stood at USD 26 billion, as per the data of the Department for Promotion of Industry and Internal Trade (DPIIT).
In July, the country had attracted USD 17.5 billion worth of foreign investments. Sectors which attracted maximum foreign inflows during April-September 2020-21 included computer software and hardware (USD 17.55 billion), services (USD 2.25 billion), trading (USD 949 billion), chemicals (USD 437 million) and automobile (USD 417 million).
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Singapore emerged as the largest source of FDI in India during the period with USD 8.3 billion investments. It was followed by the US (USD 7.12 billion), Cayman Islands (USD 2.1 billion), Mauritius (USD 2 billion), the Netherlands (USD 1.5 billion), UK (USD 1.35 billion), France (USD 1.13 billion) and Japan (USD 653 million). Further, according to DPIIT, total FDI (including reinvested earnings) stood at about USD 40 billion.
FDI is a major driver of economic growth and an important source of non-debt finance for the economic development of the country. The government has carried out FDI reforms in various sectors, including contract manufacturing and coal mining.