So far this financial year, Singapore and The United States of America have been the biggest contributors towards FDI equity inflows to India. Data published by the Department for Promotion of Industry and Internal Trade (DIPP) shows that Singapore has invested Rs 62,084 crore into India between April and September 2020. This was followed by the USA with Rs 53,266 crore of inflows. In the fiscal second quarter alone, India has received $28 billion of FDI inflows, which included equity inflows, re-investment earnings, and other capital.
Other top contributors include the Cayman Islands with inflows worth Rs 15,672 crore and Mauritius with Rs 15,019 crore. These are followed by the Netherlands and the United Kingdom. Sectorally, most of the FDI equity inflows have flown towards the computer software and hardware sector. The sector has received Rs 1.31 lakh crore in inflows between April and September. This followed by Rs 16,995 crore worth inflows into the services sector, and then trading with Rs 7,140 crore worth inflows.
Historically, FDI equity inflows have been largely concentrated towards the services sector, accounting for 16.85% of the total inflows into India between April 2000 and September 2020. Computer software and Hardware sector takes the second spot with 12.49% share of the pie. The telecommunications sector accounts for 7.46% while trading and construction development sectors got over 5% of the total inflows each.
Among states, the highest recipient of FDI inflows so far this fiscal year has been Gujarat with Rs 1.19 lakh crore worth inflows. Karnataka and Maharashtra both received over Rs 27,000 crore of FDI inflows while Delhi clocked in at Rs 19,863 crore.
Lauding the BJP-led central government, Commerce and Industry Minister Piyush Goyal said that the increase in foreign direct investment (FDI) into India in July-September 2020 to $28.1 billion indicates global investors’ preference for the country’s enabling environment. “Despite COVID, Foreign Direct Investment doubles year-on-year, indicating global investors’ preference for India’s enabling environment under PM Narendra Modi,” the senior BJP leader tweeted.