FDI Inflow in India – Highest ever for first 5 months in a financial year

21 October 2020: 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. So, during April to August, 2020 period of the Financial Year 2020-21, total FDI inflow of US$ 35.73 billion is received. It is the highest ever for first 5 months of a financial year and 13% higher as compared to first five months of 2019-20 (US$ 31.60 billion), according to an official statement from the Ministry of Commerce & Industry. Similarly, FDI equity inflow received during F.Y. 2020-21 (April to August, 2020) is US$ 27.10 billion. It is also the highest ever for first 5 months of a financial year and 16% more compared to first five months of 2019-20 (US$ 23.35 billion).

The Government has an investor friendly FDI policy. The intent all this while has been to remove the policy bottlenecks that have been hindering the investment inflows into the country. 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 Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors.