Karnataka (37.55%) and Maharashtra (26.26%) are the top 2 States in receiving FDI
New Delhi: Singapore (27.01%) and the USA (17.94%) emerged as the top two sourcing nations in Foreign Direct Investment (FDI) equity flows into India in FY2021-22, the Ministry of Commerce & Industry, stated here today. The other top countries on the list were Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%).
India received the highest annual FDI inflows of USD 84,835 million in FY 21-22 overtaking last year’s FDI by USD 2.87 billion. Earlier, FDI inflows increased from USD 74,391 million in FY 19-20 to USD 81,973 million in FY 20-21.
The Ministry stated that FDI Equity inflow in Manufacturing Sectors increased by 76% in FY 2021-22 (USD 21.34 billion) compared to the previous FY 2020-21 (USD 12.09 billion).
It may be noted that as per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global trends in FDI inflows, India has improved one position to 7th rank among the top 20 host economies for 2021.
The top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 were Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non-Finance/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction (Infrastructure) Activities (5.52%).
The top 5 States receiving the highest FDI Equity Inflow during FY 2021-22 were Karnataka (37.55%), Maharashtra (26.26%), Delhi (13.93%), Tamil Nadu (5.10%) and Haryana (4.76%)
The top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 were Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non-Finance/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction (Infrastructure) Activities (5.52%).
During FY 2021-22 FDI has been reported from 101 countries, whereas, it was reported from 97 countries during the previous FY 2020-21.
In India FDI up to 100% is allowed in non-critical sectors through the automatic route, not requiring security clearance from the Ministry of Home Affairs (MHA). Prior government approval or security clearance from MHA is required for investments in sensitive sectors such as defence, media, telecommunication, satellites, private security agencies, civil aviation and mining, besides any investment from Pakistan and Bangladesh. All foreign investments are required to be in compliance with the applicable entry route, sectoral cap, attendant conditions, sectoral laws, Companies Act, 2013 and rules thereunder, pricing guidelines, documentation and reporting requirements.
– global bihari bureau
