Daimler Truck Innovation Center received 35% of $343.65m FDI Equity
Singapore was the top investing country in the Indian R&D during Calendar Year 2021 with 40% share of US$343.64 million FDI Equity inflow, Ministry of Commerce and Industry said on 19 July 2022.
Germany was second with 35% and the US third with 11%.
The FDI Equity inflow from several countries like Germany, Mauritius, France, Singapore, Oman and the US increased more than 200% over CY 2020.
Germany’s Daimler Truck Innovation Center was the top FDI Equity inflow recipient company in R&D during CY 2021 with 35% share. It was followed by Aragen Life Sciences Private Limited with 34% and Stelis Biopharma Private Limited 21%.
Overall, the US$343.64 million R&D FDI Equity inflow increased by a hefty 516% over 2020’s US$55.77 million.
FDI is permitted under 100% automatic route in R&D sector subject to applicable laws and regulations as well as security and other conditionalities.
Karnataka was the top FDI Equity recipient state in R&D during CY2021 followed by Telangana and Haryana.
Telangana, Karnataka, Haryana, Andhra Pradesh and Tamil Nadu showed growth in R&D FDI Equity inflow of more than 250% during CY2021 compared to 2020.
These trends indicate a robust and growing R&D sector which would benefit the economy by driving innovation, increasing productivity, thereby leading to higher economic growth, the Ministry said.
R&D plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth.
Foreign Direct Investment (FDI) infuses long term sustainable capital in the economy and contributes towards technology transfer, development of strategic sectors, greater innovation, competition and employment creation amongst other benefits, elaborated the Ministry.
“It has been a continuous endeavor of the Government to attract and promote R&D intensive FDI in order to supplement domestic capital, technology and skills for accelerated economic growth and development,” said the Ministry. fiinews.com
