FDI Inflows:
Foreign Direct Investment (FDI) inflows grew 62% during the first four months (April-July period) of current FY 2021-22 over corresponding period last year (2020).
- India attracted a total FDI inflow of USD 27.37 billion during the four months.
- In the FY 2020-21, India saw growth of 10% (to $82 bn) in FDI.
FDI Equity:
- FDI equity inflow grew by 112% in the April-July period of FY 2021-22 (USD 20.42 billion) compared to the year ago period.
Top Sectors: - The Automobile Industry has emerged as the top sector with 23% share of the total FDI Equity inflow followed by Computer Software & Hardware (18%) and Services Sector (10%) respectively.
Top FDI Destinations:
- Karnataka is the top recipient state for the period with 45% share of the total FDI Equity inflows followed by Maharashtra (23%) and Delhi (12%).
Foreign Direct Investment:
- FDI is the process whereby residents of one country (the home country) acquire ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in another country (the host country).
- It is different from Foreign Portfolio Investment where the foreign entity merely buys stocks and bonds of a company. FPI does not provide the investor with control over the business.
