Indian Economy News

India gets the highest annual FDI inflow of USD 83.57 billion in FY21-22

In the Financial Year 2021-22, India received the largest annual FDI inflow of US$ 83.57 billion. This figure surpassed last year's total by US$ 1.60 billion, despite the military conflict in Ukraine and the COVID-19 pandemic. India's FDI inflows have surged 20-fold from US$ 4.3 billion in FY 2003-04.

It is noteworthy that FDI inflow has increased by 23% post-Covid (March 2020-March 2022: US$ 171.84 billion) in comparison to FDI inflow reported pre-Covid (February 2018-February 2020: US$ 141.10 billion) in India.

Furthermore, India is fast becoming a popular destination for foreign manufacturing investments. FDI equity inflow into manufacturing sectors surged by 76% in FY 2021-22 (US$ 21.34 billion) in comparison to FY 2020-21 (US$ 12.09 billion).

Singapore is the top investor country in terms of FDI equity inflow, with 27%, followed by the US (18%) and Mauritius (16%) for FY 2021-22. 'Computer software & hardware' has emerged as the main recipient sector of FDI equity inflow in FY 2021-22, accounting for roughly 25%, followed by the services sector (12%) and the automobile industry (12%).

Karnataka is the largest recipient state, accounting for 38% of total FDI equity inflows in FY 2021-22, followed by Maharashtra (26%), and Delhi (14%).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.