Karnataka is the top FDI Equity recipient state in R&D followed by Telangana and Haryana
New Delhi: India attracted USD 343.64 million FDI equity inflow in the R&D sector during C.Y. 2021 (Calendar Year) which is 516% higher as compared to previous C.Y. 2020 (USD 55.77 million), the Union Ministry of Commerce and Industry stated here today.
Foreign Direct Investment (FDI) is permitted under a 100% automatic route in the Research and Development sector subject to applicable laws/regulations, security and other conditionalities.
Karnataka is the top FDI Equity recipient state in R&D during C.Y. 2021 followed by Telangana and Haryana. The following states showed growth of more than 250% during C.Y. 2021 compared to previous C.Y. 2020: Telangana, Karnataka, Haryana, Andhra Pradesh and Tamilnadu.
Singapore is the top investing country in Research and Development during C.Y. 2021 with a 40% share of total FDI Equity in R&D followed by Germany (35%) and the United States of America (11%). Further, FDI Equity inflow from several countries like Germany, Mauritius, France, Singapore, Oman and U.S.A. showed an increase of more than 200% as compared to the previous C.Y. 2020.
Daimler Truck Innovation Center was the top FDI Equity inflow recipient company in R&D during C.Y. 2021 with a 35% share of total FDI Equity in R&D followed by Aragen Life Sciences Private Limited (34%) and Stelis Biopharma Private Limited (21%).
“These trends indicate a robust and growing R&D sector which would benefit the economy by driving innovation, increasing productivity, thereby leading to higher economic growth,” the Ministry claimed.
Research and Development (R&D) plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth. Foreign Direct Investment (FDI) infuses long-term sustainable capital in the economy and contributes towards technology transfer, development of strategic sectors, greater innovation, competition and employment creation amongst other benefits. “It has been a continuous endeavour of the Government to attract and promote R&D-intensive FDI in order to supplement domestic capital, technology and skills for accelerated economic growth and development,” the Ministry said.
– global bihari bureau