FDI equity inflow grew by 40% in the first 9 months of financial year 2020-21 (US$ 51.47 billion)
The country has attracted total FDI inflow of US$ 67.54 billion during April to December 2020. It is the highest ever for the first nine months of a financial year and 22% higher as compared to the first nine months of 2019-20 (US$ 55.14 billion). This was announced on Thursday (4th March, 2021) by the Ministry of Commerce and Industry.
Foreign Direct Investment (FDI) is a major driver of economic growth and an important source of non-debt finance for the economic development of India. As the Government has been trying to put in place an enabling and investor friendly FDI policy to make the process of FDI more investor friendly, the efforts are showing results. “The steps taken in this direction during the last six and a half years have borne fruit, as is evident from the ever-increasing volumes of FDI inflows being received into the country. Continuing on the path of FDI liberalization and simplification, Government has carried out FDI reforms across various sectors”, says the press release.
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 and India has become a preferred investment destination amongst global investors, it said.
According to release, the FDI equity inflow grew by 40% in the first 9 months of 2020-21 (US$ 51.47 billion) compared to the year ago period (US$ 36.77 billion).
In the third quarter of 2020-21, FDI inflow increased by 37% to US$ 26.16 billion compared to US$ 19.09 billion in the 3rd quarter of 2019-20. FDI inflow showed positive growth of 24% in the month of December, 2020 (US$ 9.22 billion) compared to December, 2019 (US$ 7.46 billion)
