India has recorded an annual FDI inflow of USD 83.57 billion in the 2021-22 financial year. For the year 2014-2015, FDI inflows into India of only USD 45.15 billion compared to the highest annual FDI inflow of USD 83.57 billion reported in the 2021-22 financial year exceeds FDI of last year was USD 1.60 billion although the military was operating in Ukraine and the covid19 epidemic. India’s FDI revenues have increased 20 times since FY03-04, when revenue was only USD 4.3 billion. In addition, India is growing rapidly as the preferred country for foreign investment in the manufacturing sector. FDI Equity inflows into the Product Sector increased by 76% to FY 2021-22 (USD 21.34 billion) compared to the previous FY 2020-21 (USD 12.09 billion).
Foreign Direct Investment status
The trends in India’s Foreign Direct Investment entry prove their status as an preferred investment destination for global investors.It may be noted that FDI inflows increased by 23% after Covid (March, 2020 to March 2022: USD 171.84 billion) compared to FDI inflows reported before Covid (February, 2018 to February, 2020: USD 141.10 billion) India.
According to FDI Equity’s top investment countries, ‘Singapore’ is up 27%, followed by U.S.A (18%) and Mauritius (16%) of FY 2021-22. ‘Computer Software & Hardware ‘has already emerged as the top recipient category for FDI Equity entry during FY 2021-22 with a share of about 25% followed by the Service Sector (12%) and the Automotive Industry (12%) respectively.
Under the category `Computer Software & Hardware ‘, the major recipient regions of FDI Equity revenue are Karnataka (53%), Delhi (17%) and Maharashtra (17%) during FY 2021-22. Karnataka is the leading country with 38% of the share of total FDI Equity entry reported FY 2021-22 followed by Maharashtra (26%) and Delhi (14%). The majority of Karnataka equity was reported in `Computer Software & Hardware ‘(35%), Automotive Industry (20%) and` Education’ (12%) during FY 2021-22.
Steps taken by the Government
The steps taken by the Government over the past eight years have borne fruit as evidenced by the ever-increasing veins of internationally accepted FDI, and the setting of new records. The government is reviewing FDI policy on a regular basis and making significant changes from time to time, to ensure that India remains an attractive and friendly destination for investors. The government has put in place a free and transparent FDI policy, in which most sectors are open to FDI under the default route. In order to further streamline and simplify FDI’s policy of providing ease of business and attracting investors, changes have been made recently in all sectors such as Coal Mining, Contract Production, Digital Media, Commercial Trade, Aviation, Security, Insurance and Telecom.
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