India has recorded the highest ever periodic FDI flux of USD 83.57 billion in the Financial Year 2021- 22.
In 2014-2015, FDI flux in India stood at bar 45.15 USD billion as equated to the highest ever periodic FDI flux of USD 83.57 billion chartered during the fiscal year 2021- 22 catching last year’s FDI by USD1.60 billion despite military assignment in Ukraine and COVID- 19 pandemic. India’s FDI influxes have accelerated 20-fold since FY 03- 04, when the influxes were USD 4.3 billion solely.
The details of entire FDI fluxes reported during the last four fiscal times are as under
No.Financial Year | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
Amount of FDI influxes( in USD billion) | 62.00 | 74.39 | 81.97 | 83.57 |
Further, is fleetly surfacing as a favoured country for alien investments in the manufacturing sector. FDI Equity flux in Manufacturing Sectors have increased by 76 in FY 2021- 22 (USD21.34 billion) compared to FY 2020 21( USD12.09 billion).
Success Rate
The following trends in India’s Foreign Direct Investment flux are an countersign of its status as a favored investment destination amongst global investors.
It may be weighed in that FDI flux has increased by 23 post-Covid (March, 2020 to March 2022 USD 171.84 billion) in comparison to FDI flux reported pre-Covid( February, 2018 to February, 2020 USD 141.10 billion) in India.In terms of top investor countries of FDI Equity flux, ‘ Singapore ’ is at the apex with 27, followed byU.S.A (18) and Mauritius(16) for the FY 2021- 22. ‘ Computer Software & Hardware ’ has surfaced as the top recipient sector of FDI Equity flux during FY 2021- 22 with around 25 shares supervised by Services Sector( 12) and Automobile Industry( 12) collectively.
Under the sector Computer Software & Hardware ’, the major recipient nations of FDI Equity inflow are Karnataka( 53), Delhi( 17) and Maharashtra( 17) during FY 2021- 22. Karnataka is the top recipient state with 38 share of the total FDI Equity flux reported during the FY 2021- 22 followed by Maharashtra( 26) and Delhi( 14). maturity of the equity flux of Karnataka has been reported in the sectors Computer Software & Hardware ’( 35), Automobile Industry( 20) and Education ’( 12) during the FY 2021- 22.
Conclusion
The pathway taken by the administration during the Last eight times have borne fruit as is apparent from the ever- accelerating amounts of FDI flux being entered into the country, setting new records. The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains an alluring and investor friendly destination.
Government has put in place a nonconventional and crystal clear program for FDI, wherein most of the sectors are open to FDI under the involuntary route. To further liberalise and streamline FDI policy for delivering comfort of doing business and attracting investments, reforms have been accepted lately across sectors similar as Coal Mining, Contract Manufacturing, Digital Media, Single Brand Retail Trading, Civil Aviation, Defence, Insurance and Telecom.
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