India’s FDI jumps 19% to USD 59.64 billion in 2020-21, Singapore top investor

New Delhi: Foreign direct investments (FDI) into the country grew 19 percent to USD 59.64 billion during 2020-21 on account of measures taken by the government on the fronts of policy reforms, investment facilitation and ease of doing business, commerce and industry ministry said on Monday. Total FDI, including equity, re-invested earnings and capital, rose 10 percent to the 'highest ever' of USD 81.72 billion during 2020-21 as against USD 74.39 billion in 2019-20.

"FDI equity inflow grew by 19 percent in 2020-21 (USD 59.64 billion), compared to 2019-20 (USD 49.98 billion)," the ministry said in a statement.

In terms of top investor countries, Singapore is at the top with 29 percent share. It was followed by the US  (23 percent) and Mauritius (9 percent) during the last fiscal.

"This 'record-breaking' level of FDI inflow, especially when Indian economy was under the shadow of COVID-19 throughout the year, reaffirms India as one of the most sought-after destinations for global capital hunting for 'superior' yield"- Uday Bhansali, President, Deloitte India (Financial Advisory)

"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," it said.

It added that the inflows are an endorsement of India''s status as a preferred investment destination among global investors.

The computer software and hardware sector attracted the highest inflows with around 44 percent share of the total FDI equity inflows. It was followed by construction (infrastructure) activities (13 percent) and services sector (8 percent), respectively.

ALSO READ:

1. Delivered: Liquid medical oxygen from Singapore sourced by Indian Oil unloaded in Vizag

2. Part 2: How transparent is ONGC about lapses in HSE with its workforce?

"Gujarat is the top recipient state during 2020-21 with 37 percent share of the total FDI equity inflows, followed by Maharashtra (27 percent) and Karnataka (13 percent)," it added.

Commenting on the numbers, Deloitte India President (Financial Advisory) Uday Bhansali said this 'record-breaking' level of FDI inflow, especially when Indian economy was under the shadow of COVID-19 throughout the year, reaffirms India as one of the most sought-after destinations for global capital hunting for 'superior' yield.

Shardul Amarchand Mangaldas & Co Partner (Mergers & Acquisitions, Private Equity and General Corporate) Iqbal Khan, speaking to news agency PTI, said that even though the pandemic continues, the positive FDI trend is expected to continue for certain pandemic-resilient sectors like pharmaceutical, life sciences and tech-enabled services.

"This is primarily due to the extensive dry powder focussed on promising investment opportunities in India and the government's pro-FDI policies," he said.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram & Twitter as well. Join PSU Watch Channel in your Telegram and follow us on Twitter to stay updated)