Foreign Direct Investments (FDI) in April ‘21

India attracts 60% increased Foreign Direct Investments (FDI) in April ‘21: Strong & Positive Future

India: Strong & Positive Future – Higher Foreign Direct Investments (FDI) in April ‘21

India is rising and shining. It is evident from the latest data that reported FDI equity inflow of $4.44 Billion in the month of April this year against $2.77 billion during the same month last year. A whopping jump of 60% – that has the power to boost confidence of the growing economy its investors and the prospects looking forward to tap this emerging market.

The most astonishing fact is that these investments are reported amidst the second wave of Covid19 and that too when the country witnessed nationwide and localized lockdowns to curtail the spread of highly infectious delta variant.

Undoubtedly, the FDI inflows are the clear indicators and endorsements of India’s status as preferred investment destination amongst the global investors. The trend also communicates positivity towards the policies, reforms and the new procedures leading to ‘ease of doing business’ – a push and objective by the government to make India $5 Trillion economy.

As per the available data (source: Department for Promotion of Industry and Internal Trade (DPIIT); Computer, software and hardware (24%) emerged as the top sector attracting FDI followed by services sector (23%) and education sector (8%). Karnataka emerged as the top recipient state during April with 31% share of the total FDI equity inflows, followed by Maharashtra (19%) and Delhi (15%). It may be noted here that government’s thrust is on infrastructure, health and agriculture. However, India is opening up to different markets around the globe.

The Indian economy offers a favorable business environment for all companies so that they can make most of their expansion plans by identifying growth opportunities at grass-roots level. Under the head of ‘Startup India Movement’ the government is introducing several reforms to create possibilities for getting Foreign Direct Investment (FDI). Some initiatives have already been undertaken to alleviate the business environment from outdated policies and regulations. This reform is also aligned with parameters of World Bank’s ‘Ease of Doing Business’ index to improve India’s ranking on it.

According to the data shared by the government, Mauritius is the top investing country with 24 per cent of the equity inflows in April. This is followed by Singapore that continues to remain one of the top sources of FDI for India with inflows at 21 per cent and Japan at 11 per cent, respectively.

According to a report released by the United Nations Conference on Trade and Development (UNCTAD), Indian is the fifth largest recipient of FDI inflows in the world in the financial year 2020-21. This came at a time when global FDI inflows have been severely hit by Covid-19, declining to $1 trillion in 2020-21 from $1.5 trillion a year ago.

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