Interview Guidance Program (IGP) for UPSC CSE 2024, Registrations Open Click Here to know more and registration
What is the News?
The Government releases data regarding the Foreign Direct Investment – FDI inflows in India from April to January 2021.
FDI inflows in India from April 2020 to January 2021:
- India attracted a total FDI inflow of US$ 72.12 billion from April to January 2021.
- Significance: It is the highest ever for the first ten months of a financial year. Further, it is 15% higher than the similar FDI inflow of 2019-20 (US$ 62.72 billion).
- Top Investor Countries: Singapore is the top FDI investor. It is followed by the USA and UAE.
- Sectors: Computer Software & Hardware emerges as the top sector with 45.81% of the total FDI equity inflow. This is followed by Construction (Infrastructure) Activities (13.37%) and Services Sector (7.80%) respectively.
About Foreign Direct Investment(FDI):
- FDI is the category of international investment. It reflects the objective of obtaining a lasting interest from a resident entity in one economy to an enterprise in another economy.
- Further, the lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise. This has a significant degree of influence on the management of the enterprise.
Components: FDI consists of three components:
- Firstly, Equity capital: It is the FDI purchase of shares of an enterprise in a country other than its own.
- Secondly, Reinvested earnings: It comprises the direct investors’ share (in proportion to direct equity participation) of earnings not distributed. Such retained profits by affiliates are reinvested.
Note: The earnings of the share are distributed to the investor in the form of dividends by affiliates, or earnings not remitted. - Thirdly, Intra-company loans or intra-company debt transactions: It refers to short- or long-term borrowing and lending of funds between direct investors (or enterprises) and affiliate enterprises.
Source: PIB
NITI Aayog Releases “Investment Opportunities in India’s Healthcare Sector” report
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
