A Foreign Direct Investment is an investment made by a firm or individual in one country into business interests located in another country . Generally, FDI takes places when an investor establishes Foreign business operations or acquirers Foreign business assets in a foreign company. However, FDI are distinguish from portfolio investment in which an investor merely purchases equities of Foreign based companies.
Ministry of Commerce & Industry
India attracted highest ever total FDI inflow of US$ 81.72 billion all through 2020-21, 10% extra than the closing economic year.
Posted On: 24 MAY 2021 three:56PM via PIB Delhi
Measures taken by way of the Government at the fronts of Foreign Direct Investment (FDI) policy reforms, funding facilitation and ease of doing enterprise have resulted in expanded FDI inflows into the us of a. The following trends in India’s Foreign Direct Investment are an endorsement of its reputation as a desired investment vacation spot among global traders:
India has attracted maximum ever overall FDI inflow of US$ eighty one.72 billion for the duration of the monetary year 2020-21 and it’s miles 10% higher compared to the remaining financial year 2019-20 (US$ seventy four.39 billion).FDI fairness influx grew through 19% in the F.Y. 2020-21 (US$ 59.Sixty four billion) in comparison to the previous year F.Y. 2019-20 (US$ forty nine.98 billion)
In terms of top investor nations, ‘Singapore’ is on the apex with 29%, observed by way of the USA (23%) and Mauritius (nine%) for the F.Y. 2020-21.

Majority of the equity inflow of Gujarat has been pronounced inside the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%) at some stage in the F.Y. 2020-21.
The predominant sectors, particularly Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than a hundred% soar in fairness throughout the F.Y. 2020-21 in comparison to the previous 12 months.
Out of top 10 nations, Saudi Arabia is the top investor in phrases of percent growth for the duration of F.Y. 2020-21. It invested US$ 2816.08 million in contrast to US$ 89.Ninety three million said inside the preceding monetary year.
227% and forty four% increase recorded in FDI equity inflow from the united states & the United Kingdom respectively, all through the F.Y. 2020-21 compared to F.Y.2019-20.
