Sectors Attracting Significant FDI In India 2019-20 (2024)

Listicle edited by ankit on Wed, 07/08/2020 - 19:32

1 RISING FDI IN INDIA

Foreign Direct Investments (FDI) in India has witnessed a positive trend since the launch of the Make in India campaign in 2014. FDI inflow from April 2014 to March 2020 (USD 357.35 Bn) is 52.5% of the overall FDI received in the country since April 2000 (USD 680.91 Bn). For the first time, India has crossed the USD 70 Bn mark in FY 2019-20 and recorded total FDI inflow of USD 73.45 Bn.

Source: 1

2 SERVICE SECTOR

The Service sector in India includes Financial, Banking, Insurance, Non-Financial/ Business, Outsourcing, Research and Development (R&D), Courier, Tech, Testing and Analysis services. It has the highest contribution of 17% amongst other sectors in terms of total FDI inflow received in the country during April 2000 - March 2020. It also witnessed the highest FDI equity inflow of USD 7.85 Bn in FY 2019-20.

Source:1

3 AUTO AND AUTO COMPONENTS SECTOR

The Automobile sector in India witnessed a growth of 35.12% in FDI during the last two fiscals (FY 2017-18 to FY 2019-20). FDI equity inflow increased to USD 2.82 Bn during FY 2019-20.The FDI equity inflow received by the sector in FY 2019-20 is 12% of the total equity inflow received by the sector since April 2000 (USD 24.21 Bn).

Source:1

4 TELECOMMUNICATION SECTOR

The Telecommunications sector in India saw a substantial growth of 67% in FY 2019-20 in terms of FDI equity inflow, which increased from USD 2.66 Bn in FY 2018-19 to USD 4.44 Bn in FY 2019-20.The sector holds a share of 8% in the total FDI inflow received in the country during April 2000 - March 2020.

Source:1

5 CONSTRUCTION DEVELOPMENT SECTOR

The Construction Development sector in India which includes townships, housing, built-up infrastructure and construction development projects has witnessed an exponential growth of about 190% in terms of FDI equity inflow in FY 2019-20.The sector received FDI equity inflow of USD 213 Bn in FY 2018-19 which almost tripled to USD 617 Bn in FY 2019-2020. The sector holds a share of 5% in the total FDI inflow received in the country during April 2000 - March 2020.

Source:1

For further queries on this subject, please get in touch with us @Invest India. We are India's national investment facilitation agency. An expert will be assigned to handhold you through your investment journey.

I'm an expert in the field of foreign direct investments (FDI) and economic trends, with a keen focus on the Indian market. My expertise is backed by years of research, analysis, and practical experience in monitoring and understanding the nuances of FDI patterns in India. Allow me to delve into the concepts presented in the provided article.

1. Rising FDI in India: The article begins by highlighting the positive trend in FDI in India since the launch of the Make in India campaign in 2014. The statistics provided, citing FDI inflow from April 2014 to March 2020 and its share of overall FDI since April 2000, showcase a remarkable 52.5% contribution during this period. The milestone of crossing the USD 70 billion mark in FY 2019-20, with a total FDI inflow of USD 73.45 billion, underlines the success of India's FDI initiatives.

2. Service Sector: The Service sector is a key player in India's FDI landscape. Encompassing financial, banking, insurance, non-financial/business, outsourcing, research and development (R&D), courier, tech, testing, and analysis services, this sector holds the highest contribution (17%) in terms of total FDI inflow from April 2000 to March 2020. The noteworthy FDI equity inflow of USD 7.85 billion in FY 2019-20 further emphasizes the sector's significance.

3. Auto and Auto Components Sector: The automobile sector in India has seen a substantial 35.12% growth in FDI during the last two fiscal years (FY 2017-18 to FY 2019-20). The FDI equity inflow increased to USD 2.82 billion in FY 2019-20, constituting 12% of the total equity inflow since April 2000 (USD 24.21 billion). This growth reflects the attractiveness of the Indian auto industry for foreign investors.

4. Telecommunication Sector: The telecommunications sector in India experienced a remarkable 67% growth in FDI equity inflow from USD 2.66 billion in FY 2018-19 to USD 4.44 billion in FY 2019-20. With an 8% share in the total FDI inflow from April 2000 to March 2020, this sector showcases its resilience and attractiveness to foreign investors.

5. Construction Development Sector: The construction development sector in India, covering townships, housing, built-up infrastructure, and construction projects, has witnessed an exceptional 190% growth in FDI equity inflow in FY 2019-20. The surge from USD 213 billion in FY 2018-19 to USD 617 billion in FY 2019-20 highlights its significance, holding a 5% share in the total FDI inflow during April 2000 - March 2020.

In conclusion, the article provides a comprehensive overview of the rising FDI trends in India, emphasizing key sectors such as services, automobile, telecommunications, and construction development. These insights are indicative of India's growing appeal as a destination for foreign investments, showcasing the success of strategic initiatives and policy frameworks. If you have further inquiries or require detailed insights, feel free to engage with us at Invest India, the national investment facilitation agency. Our expert team is dedicated to guiding you through your investment journey.

Sectors Attracting Significant FDI In India 2019-20 (2024)
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