New Delhi: India gets maximum foreign direct investment (FDI) from countries like  Singapore, the USA, Mauritius, Netherland, and Switzerland. During FY 2021-22, the FDI equity inflow into India from Singapore was pegged at 27.01 percent, USA 17.94 per cent, Mauritius 15.98 per cent, Netherland 7.86 per cent and Switzerland 7.31 per cent. They emerged as the top five countries for FDI equity inflows into India during FY 2021-22.

India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector. FDI equity inflow in manufacturing sectors have increased by 76 per cent in FY 2021-22 (USD 21.34 billion) as compared to previous FY 2020-21 (USD 12.09 billion), said the Ministry of Commerce and Industry in a statement.

The Central government has implemented several transformative reforms under the FDI policy regime across sectors such as insurance, defence, telecom, financial services, pharmaceuticals, retail trading, e-commerce, construction and development, civil aviation, manufacturing, etc. Despite the ongoing pandemic and global developments, India received the highest annual FDI inflows of USD 84,835 million in FY 21-22 overtaking last year’s FDI by USD 2.87 billion.

Earlier, FDI inflows increased from USD 74,391 million in FY 19-20 to USD 81,973 million in FY 20-21. The government continues to liberalize investment restrictions, eliminate regulatory barriers, nurture international relations and improve the business environment. Changes are made in the FDI policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations, said a ministerial officer, wishing not to be named.

Top five sectors receiving the highest FDI equity inflow during FY 2021-22 are computer software and hardware (24.60 per cent), services sector consisting of finance, banking, insurance, non-fin business, outsourcing, R&D, courier, technological testing and analysis, and other 12.13 per cent, automobile industry (11.89 per cent, trading 7.72 per cent and construction activities 5.52 per cent.

Top five states receiving highest FDI equity inflow during FY 2021-22 are Karnataka (37.55 per cent), Maharashtra (26.26 per cent), Delhi (13.93 per cent), Tamil Nadu (5.10 per cent) and Haryana (4.76 per cent). During FY 2021-22 FDI has been reported from 101 countries, whereas, it was reported from 97 countries during previous FY 2020-21.

In India FDI up to 100 per cent is allowed in non-critical sectors through the automatic route, not requiring security clearance from the Ministry of Home Affairs (MHA). Prior government approval or security clearance from MHA is required for investments in sensitive sectors such as defence, media, telecommunication, satellites, private security agencies, civil aviation and mining, besides any investment from Pakistan and Bangladesh. /BI/