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Total FDI inflow during Q2 FY21 stands at $28.1 bn

ENEWSTIME Desk by ENEWSTIME Desk
November 28, 2020
in Business
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The total foreign direct investment (FDI) during the second quarter of the financial year 2020-21 stood at $28.10 billion, out of which FDI equity inflows were $23.44 billion.

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“This takes the FDI equity inflows during the financial year 2020-21 up to September 2020 to $30,004 million, which is 15 per cent more than the corresponding period of 2019-20,” said an official statement.

In rupee terms, the FDI equity inflows of Rs 2,24,613 crore are 23 per cent more than the last year.

August 2020 was a significant month when FDI equity inflow of $17.48 billion was reported in the country.

According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), Mauritius and Singapore were the biggest sources of FDI in India with 29 per cent and 21 per cent contribution respectively.

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The US, Netherlands and Japan followed with 7 per cent contribution each.

Among the sectors, services sector continued to lead with the highest share in FDI inflow. The sector, which includes financial, banking, insurance, outsourcing, R&D among others, received 17 per cent of the FDI equity inflow during the period under review.

Computer software and hardware segment got 12 per cent FDI share while the telecom sector received 7 per cent.

Among the states, Gujarat attracted the highest FDI equity inflow — 35 per cent of the overall funds coming in during April-September — followed by Maharashtra (20 per cent), Karnataka (15 per cent), and Delhi (12 per cent).

Commerce and Industry Minister Piyush Goyal tweeted: “Despite COVID, Foreign Direct Investment doubles year-on-year. Indicating global investors’ preference for India’s enabling environment under PM Narendra Modi, FDI increased from $14.06 billion to $28.1 billion in the July-September quarter.”

Inflow of foreign investments has been on the rise after the governments around the world, including in India, announced liquidity measures in the wake of the pandemic.

The Centre has also announced liberalising measures for FDI in several sectors, including contract manufacturing, coal mining, and defence that are likely to fetch in more investments.
 

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