India, in April-August 2020, received the highest ever total Foreign Direct Investment (FDI) and this is the highest ever for the first five months of a financial year, the Union Ministry of Commerce and Industry said.
The ministry said that this fiscal year's FDI inflow during April-August was 13% higher compared to the first five months of 2019-20 ($31.60 billion).
The ministry said, “The FDI equity inflow received during April-August 2020 stood at $27.10 billion, which is also the highest ever for the first five months of a financial year and 16% more than the same period last year”.
The ministry stated that over the last six years, the overall FDI inflow increased by 55% between 2014 and 2020 compared to 2008-2014. Thus, from $231.37 billion in 2008-14 to $358.29 billion in 2014-20, the FDI rose.
The government said the inflow of FDI equity also increased by 57% from $160.46 billion during 2008-14 to $252.42 billion (2014-20).
FDIs are a major engine of economic growth and a major source of non-debt funding for India's economic development. It has been the government's initiative to put in place an FDI policy that is encouraging and investor friendly.
The ministry said, “The intent all this while has been to make the FDI policy more investor friendly and remove the policy bottlenecks that have been hindering the investment inflows into the country. The steps taken in this direction during the last six years have borne fruit as is evident from the ever-increasing volumes of FDI inflows being received into the country”.
Governments have introduced FDI reforms across different industries on the road of FDI liberalisation and simplification.
Government steps taken on the fronts of FDI policy reforms, facilitation of investment and ease of doing business have resulted in increased inflows of FDI into the nation. The following trends in India's FDI are an affirmation by global investors of its position as a preferred investment destination, the ministry stated.
News Source: Ibef