FDI equity inflow grows by 168% in Q1 2021

Aug 28: Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country.

The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:

India has attracted total FDI inflow of US$ 22.53 billion during first three months of 2021-22, i.e. April, 2021 to June, 2021 which is 90% higher as compared to first three months of 2020-21 (US$ 11.84 billion).

  • FDI equity inflow grew by 168% in the first three months of F.Y. 2021-22 (US$ 17.57 billion) compared to the year ago period (US$ 6.56 billion).
  • ‘Automobile Industry’ has emerged as the top sector during the first three months of F.Y. 2021-22 with 27% share of the total FDI Equity inflow followed by Computer Software & Hardware (17%) and Services Sector (11%) respectively.
  • Under the sector `Automobile Industry’, majority of FDI Equity inflow (88%) was reported in the state of Karnataka during the first three months of the current financial year (2021-22).
  • Karnataka is the top recipient state during the F.Y. 2021-22 (upto June, 2021) with 48% share of the total FDI Equity inflows followed by Maharashtra (23%) and Delhi (11%).

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