ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
What is the News?
The Ministry of Commerce released the data on the FDI (Foreign Direct Investment Inflow) in India for the Financial Year 2020-21.
Key Highlights from the Data:
- Firstly, India has received an FDI of $81.72 billion during the financial year 2020-21. This is 10% higher than $74.39 billion received in 2019-20.
- Secondly, the Largest Source of FDI: Singapore remained the largest source of FDI in India for the third consecutive year with a share of 29%. It was followed by the US with a 23% share and Mauritius with 9%.
- Thirdly, Saudi Arabia is the top investor in terms of percentage increase during FY21. It invested $2.8 billion in comparison to US$ 89.93 million reported in 2019-20.
- Fourthly, States: Gujarat was the top recipient of FDI among states with a 37% share of total FDI equity inflows. It was followed by Maharashtra and Karnataka with 27% and 13%.
- Sectors: Computer software and hardware emerged as the top sector in FY21 with around 44% of the total FDI equity inflow. It was followed by construction and infrastructure-related activities at 13% and services sector with 8%.
About Foreign Direct Investment(FDI):
- Firstly, Foreign Direct Investment(FDI) is the medium for acquiring ownership of assets in one country (the home country) by residents of other countries.
- Secondly, FDI may result in control of the production, distribution, and other activities in a firm in the host country.
- Thirdly, FDI is considered a major source of non-debt financial resources for economic development.
Source: The Hindu
