India receives highest ever FDI of $35.73 billion during first 5 months of FY21

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The ministry said that the FDI inflow during April-August this fiscal is 13 percent higher as compared to first five months of 2019-20

India received a total of $35.73 billion Foreign Direct Investment (FDI) inflow during April-August 2020 and this is the highest ever for first five months of a financial year, said the Union Ministry of Commerce and Industry.

The ministry said that the FDI inflow during April-August this fiscal is 13 percent higher as compared to first five months of 2019-20 ($31.60 billion).

“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 percent more than the same period last year,” said the ministry.

The ministry said that the total FDI inflow grew by 55 percent in the past six years between 2014 and 2020 period as compared to 2008-2014 time. Accordingly, the FDI grew from $231.37 billion in 2008-14 to $358.29 billion in 2014-20.

FDI equity inflow also increased by 57 percent from $160.46 billion during 2008-14 to $252.42 billion (2014-20), the government said.

The FDI is a major driver of economic growth and an important source of non-debt finance for the economic development of India. It has been the endeavor of the government to put in place an enabling and investor friendly FDI policy.

“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,” the ministry said.

Continuing on the path of FDI liberalisation and simplification, government has carried out FDI reforms across various sectors.

Measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors, the ministry said.

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