In FY22, India got 27.01 percent of its FDI inflows from Singapore, which was followed by 17.94 percent of its FDI inflows from the United States.
According to the data that was provided by the Ministry, Singapore has risen to the position of the most important source for FDI, contributing 27.01%, followed by the United States, which contributed 17.94%.
The Netherlands, Switzerland, and Mauritius come in third, fourth, and fifth place, respectively, behind the top two countries in terms of their contribution percentages, which are 15.98%, 7.86%, and 7.31%, respectively.
According to the UNCTAD
World Investment Report (WIR) 2022, India has moved up one spot to seventh place among the top 20 host economies for foreign direct investment in 2021. Since India has gotten more than its fair share of FDI. The Commerce Ministry was gracious enough to provide us with this information.
The foreign direct investment (FDI) equity inflow into India’s manufacturing sector reached $21.34 billion in FY22, marking a 76% increase from the $12.09 billion recorded in FY21. This further solidified India’s position as one of the most preferred investment avenues for investors from other countries.
The amount of foreign direct investment (FDI) that India received in FY22 was the highest ever recorded at $84.835 billion, which was an increase of $2.87 billion over the previous fiscal year’s total.
According to the Ministry of Commerce and Industry, India is quickly becoming a top destination for international investments in its manufacturing sector.
The total amount of foreign direct investment (FDI) equity flows into the manufacturing sector rose to $21.34 billion in FY22 from $12.09 billion in FY21. This is a 76% increase.
During the FY22 fiscal year, foreign direct investment was recorded coming in from 101 nations, which is an increase from the FY21 total of 97 countries.
Through the automatic route, foreign investments of up to one hundred % are permitted in India’s non-critical industries. This method does not need a security clearance from India’s Ministry of Home Affairs (MHA).
The government says it continues to liberalize investment restrictions, eliminate regulatory barriers, nurture international relations, and improve the business environment. Changes are made in the FDI policy after consultations with stakeholders including apex industry chambers, associations, representatives of industries, and other organizations.
The government has also implemented several reforms under the FDI policy regime across sectors such as insurance, defense, telecom, financial services, pharmaceuticals, retail trading, e-commerce, construction & development, civil aviation, manufacturing, etc.
The neighboring state of Maharashtra came in second place with a share of 26.26% of the total FDI inflow in FY22, followed by the national capital of Delhi with a share of 13.93%.
Karnataka came in first place among the states with a share of 37.55% of the total FDI inflow in FY22. The ministry went on to say that during FY22, foreign direct investment was recorded from 101 nations, which is an increase from the 97 countries that were reported during FY21.
Through the automatic route, the Indian government accepts up to one hundred% foreign direct investments (FDI) in non-critical industries. This does not need a security clearance from the Ministry of Home Affairs (MHA).
For investments in sensitive industries like defense, media, communications, satellites, private security services, civil aviation, and mining, in addition to any investment from Pakistan or Bangladesh, prior government permission or security clearance from the MHA is necessary.
According to the United Nations Conference on Trade and Development, foreign direct investment (FDI) flows into India decreased by 30% from its peak level in 2020 to $45 billion in 2021. This was published by Fortune India earlier this month (UNCTAD).
However, according to the trade organization’s World Investment Report 2022, there was a surge of 108 new international project financing transactions that were announced in the country. This number compares to an average of just 20 over the previous ten years.
