India receives a record high FDI inflow of Rs. 631,050 crore (US$ 79.58 billion) in FY22
FDI inflows into India reached a record high of Rs. 631,050 crore (US$ 79.58 billion) in FY 2021-22, said Mr. Som Parkash, Minister of State in the Ministry of Commerce and Industry. In FY 2021-22, FDI equity in the manufacturing sectors increased by 76 % to Rs. 158,332 crore (US$ 19.97 billion) from Rs. 89,766 crore (US$ 11.32 billion) in FY 2020-21.
The government's reforms in its FDI policy is what led to an increase in FDI inflows. A liberal and an open policy was implemented in order to attract foreign direct investment.
Measures undertaken by the Reserve Bank of India (RBI) to enhance foreign exchange inflows include exemption of incremental Foreign Currency Non-Resident (Bank) and Non-Resident (External) Rupee deposits from Cash Reserve Ratio and Statutory Liquidity Ratio and allowing of Foreign Portfolio Investment in commercial paper and non-convertible debentures with an original maturity of up to one year, amongst others.
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