New Delhi: Foreign direct investment (FDI) has been an important role in India’s economic development. It is an important source of raising capital without debt. FDI through equity has increased by 40%
It has been the endeavor of the government to implement a competent and investor friendly FDI policy. Constant steps are being taken to make FDI policy more favorable for investors and to remove policy bottlenecks in the way of investment. As a result of the steps taken in this direction in the last six and a half years, FDI inflows into the country have been steadily increasing at record levels. As part of the policy of continuous liberalization and simplification in the FDI sector, the government has made reforms related to FDI in various sectors.
As a result of steps taken by the government to improve FDI policy, simplify the investment process and make it easier to do business, FDI inflows into the country have increased. The following trends in FDI make it clear that India has become a major investment destination for global investors:
During April to December 2020, FDI worth US $ 67.54 billion has come into the country. This is the highest FDI in the first 9 months of a financial year. FDI has increased by 22 per cent compared to the same period of FY 2019-20. During this period, FDI of $ 55.14 billion came.
During the first 9 months of FY 2020-21, FDI through equity has increased by 40%. Which was US $ 51.47 billion in this period. FDI came to US $ 36.77 billion through equity in the same period of FY 2019-20.
FDI worth US $ 26.16 billion has come in the third quarter of the financial year 2020-21 alone. Which is 37 per cent more than the FDI of 19.09 billion USD in 2019-20.
Similarly, only in December 2020, FDI worth US $ 9.22 billion has come. Which is 24 percent higher than the US $ 7.46 billion in December 2019.