On the backdrop of UNCTAD, recent publication on “Global Investment Trends”, Global foreign direct investment (FDI) flows showed a strong rebound in 2021, up 77% to an estimated $1.65 trillion, from $929 bn in 2020, surpassing their pre-COVID-19 level. The outlook for global FDI in 2022 is positive. Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors.
India has attracted highest ever total FDI inflow of US$ 81.72 bn during the financial year FY 2020-21. In terms of top investor countries, Singapore is at the apex with 29%, followed by the USA (23%) and Mauritius (9%) for the FY 2020-21. Computer Software & Hardware has emerged as the top sector during FY 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
Supported by a strong pace of vaccination, India’s GDP growth at 9.2% in 2021-22 is projected to be the highest among all large economies. With India…
