FDI flows hit a record $72.12 billion in 10 months

Foreign Direct Investment (FDI) flows into India, including reinvested earnings, hit a record $72.12 billion between April 2020 and January 2021, though fresh foreign equity investments in January 2021 fell sharply to $2.71 billion from $7.62 billion in December 2020.

Japan accounted for 29% of the total FDI equity flows in January, followed by Singapore and the U.S., with consultancy services getting the largest chunk of investments (21.8%) in the month, followed by computer software and hardware (almost 16%) and services sector (13.6%).

“The trends show that the FDI equity inflow grew by 28% in the first 10 months of financial year 2020-21 to U.S.$ 54.18 billion compared to the year ago period when it was U.S.$ 42.34 billion,” the Commerce and Industry Ministry said in a statement on Monday, terming the trends ‘an endorsement of its status as a preferred investment destination’ for global investors. The overall FDI inflows were 15% higher on a year-on-year basis.

Nearly 62% of the total equity investments in 2020-21 originated from Singapore, the U.S. and the UAE, with the computer software and hardware industry receiving almost 46% of fresh investments. Construction (infrastructure) activities garnered 13.37% of the equity FDI inflows, followed by the services sector with 7.8% of foreign equity investments.