Foreign Direct Investment Inflow

Facts: The Ministry of Commerce has released the data on the Foreign Direct Investment Inflow in India.

Facts:

• For the period of last 6 years (2014-15 to 2019-20):
  • Total FDI inflow grew by 55%, i.e. from US$ 231.37 billion in 2008-14 to US$ 358.29 billion in 2014-20.
  • FDI equity inflow has also increased by 57% from US$ 160.46 billion during 2008-14 to US$ 252.42 billion(2014-20).
• For the Financial Year 2020-21 (April to August, 2020)
  • Total FDI inflow received was US$ 35.73 billion.It is the highest ever for the first 5 months of a financial year.
  • FDI equity inflow received during F.Y. 2020-21 is US$ 27.10 billion.It is also the highest ever for the first 5 months of a financial year.

Additional Facts:

• Foreign direct investment(FDI): It is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.
  • Significance: It is a major driver of economic growth and an important source of non-debt finance for the economic development of India.