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Good News Today: FDI inflow in the first half of fiscal rises 15%

During the July-September quarter, India recorded $28.1 billion FDI Equity Inflows which was $14.06 billion in the same period last year, during the first half of 2020-21 have shown 15% growth in US$ terms and 23% growth in Rupee terms

PSU Watch Bureau
  • The total Foreign Direct Investment (FDI) inflow into India doubled to $28.1 billion in the July-September quarter this fiscal, from $14.06 billion in the same period last year

  • Among the sectors, the Services sector has received maximum FDI equity inflows, from April 2020 to September 2020; followed by Computer Software & Hardware, and Telecommunications

New Delhi: (FDI News) Total Foreign Direct Investments (FDI) inflows into India during the second quarter of the financial year 2020-21 (July 2020 to September 2020) have been US$ 28,102 million, out of which FDI equity inflows were US$ 23,441 million or Rs 174,793 crore. This takes the FDI equity inflows during the financial year 2020-21upto September 2020 to US$ 30,004 million which is 15% more than the corresponding period of 2019-20. In rupee terms, the FDI Equity inflows of Rs 224,613 Crore are 23% more than the last year. August 2020 has been the significant month when US$ 17,487 Million FDI equity inflows were reported in the country. "Indicating global investors' preference for India's enabling environment under PM Narendra Modiji, FDI increased from $14.06 billion to $28.1 billion in the July-September quarter," tweeted Minister of Commerce & Industry Piyush Goyal on Saturday. The Minister added that despite Covid-19 pandemic, the FDI had doubled.

In the April-June quarter of 2020-21, the total FDI inflow stood at $11.51 billion. Among the sectors, the Services sector has received maximum FDI equity inflows, from April 2020 to September 2020 followed by Computer Software & Hardware, and Telecommunications. While among the countries, Singapore was the top destination for FDI equity inflow in the April-September quarter, with $8.3 billion investments, while the US ($7.12 billion) is in the second position. The other top investors included Cayman Islands ($2.1 billion), Mauritius ($2 billion), the Netherlands ($1.49 billion), UK ($1.35 billion), France ($1.13 billion) and Japan ($653 million).

Of the total FDI in the second quarter (July-September 2020-21), the total FDI equity inflows were to the tune of $23.44 billion, as per the quarterly fact sheet put up by the Department for Promotion of Industry and Internal Trade. The other components of total FDI inflow are reinvested earnings and other capital.

In the first six months of the fiscal (April-September 2020-21), the total FDI equity inflow was at $30 billion, which was 15 per cent higher than the corresponding period of the previous fiscal, according to latest figures released by the government.

Top sectors attracting FDI in the first half of the fiscal included computer software and hardware ($17.55 billion), services ($2.25 billion), trading ($949 million), chemicals ($437 million), automobile ($417 million), construction activities ($377 million) and drugs and pharma ($367 million).

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