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 per cent 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 per cent post-Covid pandemic i.e March 2020 to 2022 registered 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 per cent, followed by US (18 per cent) and Mauritius accounting for 16 per cent.
The computer software and hardware remained the top sector which received the FDI inflow with around 25 per cent share, followed by services sector and automobile sector getting 12 per cent each.
In the computer hardware and software sector, Karnataka (53 per cent), Delhi and Maharashtra (17 per cent each) bagged the share of the FDI inflow, the government data stated.
Karnataka is the top recipient state with 38% share of the total FDI Equity inflow reported during the previous financial year followed by Maharashtra (26%) and Delhi (14%).
Majority of the equity inflow of Karnataka has been reported in the sectors `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 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.