India attracted during the C.Y. 2021 (calendar year) which is 516% more compared to previous C.Y. 2020 ($55.77 million). Foreign direct investment is allowed on a 100% automatic basis in the research and development sector subject to applicable laws/regulations, security and other conditions.Karnataka is the highest recipient state of FDI Equity in R&D during C.Y. 2021 followed by Telangana and Haryana. The following states showed a growth of more than 250% during C.Y. 2021 as compared to previous C.Y. 2020: Telangana, Karnataka, Haryana, Andhra Pradesh & Tamilnadu.
Singapore is the country with the highest R&D investment during the C.Y. 2021 with a 40% share of total equity FDI in research and development, followed by Germany (35%) and the USA (11%). Further, FDI equity inflows from several countries such as Germany, Mauritius, France, Singapore, Oman and the USA have shown an increase of over 200% compared to the previous C.Y. 2020.The Daimler Truck Innovation Center was during the C.Y. the highest recipient company of FDI capital inflows in research and development. 2021 with a 35% share of total equity FDI in research and development, followed by Aragen Life Sciences Private Limited (34%) and Stelis Biopharma Private Limited (21%).
These trends indicate a robust and growing research and development sector that would benefit the economy by driving innovation, increasing productivity, leading to higher economic growth. Research and development (R&D) plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth. Foreign direct investment (FDI) brings long-term sustainable capital into the economy and contributes to technology transfer, development of strategic sectors, greater innovation, competition and job creation, among others. The government is constantly striving to attract and support R&D-intensive FDI to complement domestic capital, technology and skills for accelerated economic growth and development.
