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The commerce and industry ministry has said that total foreign direct investment (FDI) into India rose 2 per cent to the ‘highest ever’ $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government. Total FDI comprises equity inflows, reinvested earnings and other capital. In 2020-21, the inflow stood at $81.97 billion. It was $74.39 billion in 2019-20 and $62 billion in 2018-19. It said that the foreign inflows are increasing despite challenges like a military operation in Ukraine and COVID-19 pandemic.

It added that these inflows have increased 20-fold since 2003-04 when the inflows were USD 4.3 billion only. It also informed that FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 ($21.34 billion) compared to 2020-21 ($12.09 billion). FDI equity inflows stood at USD 58.77 billion in 2021-22 against USD 59.64 billion in 2020-21. It said that in terms of top investor countries, Singapore is at the top with a 27 per cent share, followed by the US (18 per cent) and Mauritius (16 per cent) during the last fiscal.

The ministry added these trends ‘are an endorsement of its status as a preferred investment destination amongst global investors’. Among sectors, computer software and hardware attracted maximum inflows. It was followed by the services sector and automobile industry. Karnataka is the top recipient state with a 38 per cent share of the total FDI equity inflow reported during 2021-22 followed by Maharashtra (26 per cent) and Delhi (14 per cent).