FDI Equity inflow in Manufacturing Sectors have increased by 76% in FY2021-22 $21.34bn
Singapore led in getting FDI into India which was a record inflow of US$83.57 billion in the Financial Year 2021-22 from 101 countries, despite military operation in Ukraine and COVID-19 pandemic that have slowed down the global economies and brought about uncertainties to international businesses.
In terms of top investor countries of FDI Equity inflow in FY2021-22, Singapore’ is at the apex with 27%, followed by the US (18%) and Mauritius (16%).
In 2020-21, the FDI inflow was US$81.97 billion from 97 countries.
Further, India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector, Ministry of Commerce and Industry said on 20 May 2022.
FDI Equity inflow in Manufacturing Sectors have increased by 76% in FY 2021-22 (US$21.34 billion) compared to previous FY 2020-21 (US$12.09 billion).
“Computer Software & Hardware has emerged as the top recipient sector of FDI Equity inflow during FY 2021-22 with around 25% share followed by Services Sector (12%) and Automobile Industry (12%), respectively,” said the Ministry.
Under the sector Computer Software & Hardware, the major recipient states of FDI Equity inflow are Karnataka (53%), Delhi (17%) and Maharashtra (17%) during FY 2021-22.
Karnataka is the top recipient state with 38% share of the total FDI Equity inflow reported during the FY 2021-22 followed by Maharashtra (26%) and Delhi (14%).
Majority of the equity inflow of Karnataka has been reported in the sectors Computer Software & Hardware (35%), Automobile Industry (20%) and Education (12%) during the FY 2021-22.
The Government has put in place a liberal and transparent policy for FDI, wherein most of the sectors are open to FDI under the automatic route.
To further liberalise and simplify FDI policy for providing Ease of Doing Business and attract investments, reforms have been undertaken recently across sectors such as Coal Mining, Contract Manufacturing, Digital Media, Single Brand Retail Trading, Civil Aviation, Defence, Insurance and Telecom, said the Ministry.
Regular round table conferences are conducted with investors and law firms alike to keep abreast of the practical issues and problems being faced at the ground level, said the Ministry.
The FDI proposal form on FIF Portal is regularly reviewed to reduce compliance burden on applicants. FAQs have been updated and placed on DPIIT website and on FIF Portal for ease of access. Hence, continuous effort is made by DPIIT to ensure that India remains an investor friendly destination.
Automated alerts through SMS and emails to concerned ministries and departments are being used to regulate pendency of FDI proposals.
Secretary at the Department for Promotion of Industry and Internal Trade reviews the pendency of FDI proposals across all ministries and departments on monthly basis.
“This has expedited the disposal of FDI proposals. Regular training sessions are also being conducted to educate ministries and departments regarding judicious and expeditious processing of FDI proposal,” said the Ministry. fiinews.com
