India gets the highest annual FDI inflow of USD 83.57 billion in FY21-22 (2024)

FAQs

What is the highest annual FDI inflows in India? ›

The World Investment Report 2022 of UNCTAD places India as the seventh largest recipient of FDI in the top 20 host countries in 2021. India received the highest-ever FDI inflows of US$ 84.8 billion including US$ 7.1 billion FDI equity inflows in the services sector in FY22.

India has recorded highest ever annual FDI inflow of USD 83.57 billion in the Financial Year 2021-22.

"India has recorded highest ever annual FDI inflow of USD 83.57 billion in the Financial Year 2021-22," it noted. FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 (USD 21.34 billion) compared to 2020-21 (USD 12.09 billion).

NEW DELHI: Foreign direct investment (FDI) inflows into the country fell 16% to $71 billion (on a gross basis) during 2022-23 on the back of a weak global economic situation, marking the first decline in a decade.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), India's cumulative FDI inflow stood at US$ 871.01 billion between April 2000-June 2022; this was mainly due to the government's efforts to improve the ease of doing business and relax FDI norms.

Top recipients of FDI inflows worldwide in Q3 2022 were the United States (USD 86 billion), Ireland (USD 37 billion) and the United Kingdom (USD 36 billion).

FDI in service sector was increased to 46% in 2014–15. It is US $1.88 billion in 2017. Service sector includes banking, insurance, outsourcing, research & development, courier and technology testing. FDI limit in insurance sector was raised from 26% to 49% in 2014.

Maharashtra most attractive investment destination, says 2022-23 economic survey.

Despite the Indian government's restrictions on FDI from countries that share land borders with India, such as China, the country received a record FDI inflow of approximately US$84.8 billion in the fiscal year (FY) 2022, including US$7.1 billion in FDI equity inflows in the services sector.

In FY 2023, Singapore accounted for maximum inward FDI in India at US$17.20 billion, followed by Mauritius (US$6.13 billion), the US (US$6.04 billion), UAE (US$3.35 billion), and the Netherlands (US$2.49 billion).

Which country has topped the FDI inflows in India? ›

Singapore is ranked one FDI provider to India. The small island nation has invested $15.9 billion in FY22 which is accounted for 27 per cent of India's total FDI received. USA is India's second biggest investor with FDI of $10.5 billion, with 18 per cent of total FDI.

Foreign Direct Investment (FDI) inflows into the country declined by 16 per cent to $71 billion on a gross basis in the fiscal ended March 2023 impacted by weak global factors. This is the first fall in FDI inflows in the country in a decade.

New Delhi: Gross foreign direct investment (FDI) flows, for the first time in a decade, declined on an annual basis in 2022-23 to USD 71 billion mainly due to a slowdown in the global economy, according to the RBI data. The annual decline works out to be 16.3 per cent in 2022-23 compared to inflows in 2021-22.

India Foreign Direct Investment (FDI) registered a growth equal to 0.9 % of the country's Nominal GDP in Dec 2022, compared with a growth equal to 1.1 % in the previous quarter. India Foreign Direct Investment: % of Nominal GDP data is updated quarterly, available from Jun 2004 to Dec 2022.

Goods produced through FDI may be marketed domestically and also exported abroad, creating another essential revenue stream. FDI also improves a country's exchange rate stability, capital inflow and creates a competitive market. Finally it helps smoothen international relations.

FDI India plays a major role in the economic development of India by being the main monetary source. We assist foreign companies invest directly into private Indian Business and act as bridge between Indian Entrepreneurs who are looking for foreign funds with the foreign investor that is the right fit.

FDI Creates Imbalance

FDI is often concentrated either in the richer states of India or in the high skill sectors. This imbalance leads to a probable increase in the economic gap between the rich and the poor.

Sustained increases in FDI inflows are often a sign of an improved investment climate. Although the largest share of FDI goes from high income economies to other high income economies, flows to developing countries are increasing and are very important in helping to support sustainable development.

Top 5 sectors receiving highest FDI Equity Inflow during FY 2022-23 are Services Sector (Fin., Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) and Automobile Industry (5%).

Which country invest the most In India? ›

Mauritius, Singapore, the U.S., the Netherlands, Japan, the U.K., Germany, and the United Arab Emirates are the main investing countries in India. Investments were mainly oriented towards services, computer software and hardware, telecommunications, trade, the automobile industry, construction, and chemicals.

India shall see FDI increase once the market is again ready to invest in growth stage companies." In comparison to inflows in 2021–2022, the yearly reduction equals 16.3% in 2022–2023. Gross FDI inflows increased by 10% from fiscal 2019–20 to USD 81.97 billion in 2021–22.

In terms of top investor countries of FDI Equity inflow, 'Singapore' is at the apex with 27%, followed by U.S.A (18%) and Mauritius (16%) for the FY 2021-22.

During the first half of this fiscal, Singapore emerged as the top investor. It was followed by Mauritius, the U.A.E., the U.S.A., the Netherlands and Japan.

FDI outflows originating in India have risen from $2 billion in 2004 to $15 billion in 2021, constituting around 1 per cent of the global outflows.

Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

Many studies show that China is one of the most important countries for FDI inflow due to its improved infrastructure [7], continuously open market [8] , strengthened property rights protection [9,10], rapid expansion of economic scale, and competitive cost advantage [11].

Foreign direct investment is the sum of equity capital, long term capital, and short term capital as reflected in the balance of payments.

Detailed Solution. The correct answer is Services Sector. For economic growth, Foreign Direct Investment (FDI) has been a major non-debt financial resource for the economic development of India.

The combined tally of investment of three years makes Maharashtra the most attractive investment destination, states the survey. The investment is more than Karnataka ( ₹2,93,149 crore, 331 projects) and Gujarat ( ₹ 2,36,866 crore, 602 projects), states the survey.

Which sector gets most FDI in India? ›

Computer hardware and software sector in India received the highest share in FDIs amounting to over 14 billion U.S. dollars in fiscal year 2022.

According to Department for Promotion of Industry and Internal Trade data, FDI inflows into Maharashtra went up by 19 per cent year-on-year to ₹85,186 crore during the April-December of the current fiscal. The State received ₹71,858 crore of FDI inflows during the same period of FY22.

IFC Director Richard Bellingham joined the panel of judges to assess entries to the fDi's Global Cities of the Future 2021/2022 ranking produced by the Financial Times. Singapore again confirmed its top position ahead of London, Dubai and Amsterdam.