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India Records Highest Ever FDI Inflow of US$81.72 Billion in FY21

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India attracted highest ever total FDI inflow of US$As per the data released by the Ministry of Commerce & Industry, India has attracted the highest ever total Foreign Direct Investment (FDI) inflow of US$81.72 billion during FY21, which is 10 percent more than FY20(US$74.39 billion).

  • FDI equity inflow grew by 19 percent in FY21 (US$ 59.64 billion) compared to FY20 (US$ 49.98 billion).

i.Top Investing countries in FY21: 

Singapore is the top investing country with 29 percent of total investment, followed by the United States of America (USA) with 23 percent and Mauritius with 9 percent.

Percentage Increase in investment:

  • In terms of percentage increase in investment in FY21 compared with FY20, among the top 10 countries, Saudi Arabia is the top investor as it invested US$ 2816.08 million in FY21 when compared with US$ 89.93 million in FY20.
  • The USA and the United Kingdom recorded a 227 percent and 44 percent increase in FDI equity inflow in FY21 compared to FY20.

ii.Top Investment Sectors in FY21:

Sector Share of FDI Equity inflow
Computer Software & Hardware 44 percent
Construction (Infrastructure) Activities  13 percent
Services Sector 8 percent
    • Sectors such as Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100 percent jump in equity in FY21 as of FY20.

    iii.Top Recipient States in FY21:

    i.Gujarat is the top recipient state for the 4th consecutive year with a 37 percent or US$ 30.23 billion share of the total FDI equity inflows followed by Maharashtra 27 percent and Karnataka 13 percent.

    ii.Under the ‘Computer Software & Hardware’ sector, the major recipient states are Gujarat 78 percent, Karnataka 9 percent and Delhi 5 percent.

    Note – FDI – It is an investment made by a firm or individual in one country into business interests located in another country.

    Recent Related News:

    The Reserve Bank of India(RBI) stated that Foreign portfolio investors(FPIs) pumped inflows into equities in India have made the highest record of US$36 billion in FY21 up to March 10, which is the highest one since FY13.

    About Ministry of Commerce & Industry:

    Union Minister– Piyush Goyal (Rajya Sabha – Maharashtra)
    Minister of State (MoS) Independent Charge (I/C)– Hardeep Singh Puri(Rajya Sabha – Uttar Pradesh)