India reported highest FDI inflow worth $83 billion.

India reported highest FDI inflow worth $83 billion.

The figures for 2021-22 have overtaken the previous financial year by $1.60 billion despite the Ukraine war and Covid-19 pandemic, the ministry of commerce added.

India has reported the highest foreign direct investment (FDI inflow) to the tune of $83.57 billion for the financial year 2021-2022, the Ministry of Commerce and Industry said, adding the country’s foreign investment inflows increased 20-fold since the financial year 2003-04 when it recorded mere $4.3 billion.

The figures for 2021-22 have overtaken the previous financial year by $1.60 billion despite the Ukraine war and Covid-19 pandemic, the ministry added.

According to the government, the FDI inflow in the manufacturing sectors increased by 76 percent in the previous financial year ($21.34 billion) as compared to the $12.09 billion in the financial year 2020-21.

According to the data, the FDI inflow has increased by 23 percent post-Covid pandemic i.e March 2020 to 2022 registered an inflow of $171.84 billion against $141.10 billion between February 2018-2020.

Among the top contributors to India’s FDI inflow, Singapore topped the charts with a share of 27 percent, followed by the US (18 percent) and Mauritius accounting for 16 percent.

The computer software and hardware remained the top sector which received the FDI inflow with around 25 percent share, followed by the services sector and automobile sector getting 12 percent each.

In the computer hardware and software sector, Karnataka (53 percent), Delhi, and Maharashtra (17 percent each) bagged the share of the FDI inflow, the government data stated.

Karnataka is the top recipient state with a 38% share of the total FDI Equity inflow reported during the previous financial year followed by Maharashtra (26%) and Delhi (14%).

The majority of the equity inflow of Karnataka has been reported in the sectors of Computer Software & Hardware (35%), Automobile Industry (20%), and `Education’ (12%) during the FY 2021-22.

The government has attributed the high inflow to the measures taken in the past eight years. “The government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains an attractive and investor-friendly destination,” the ministry said, adding that the government has put in place a liberal and transparent policy for FDI, wherein most of the sectors are open to FDI under the automatic route.

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