FDI inflows to India fell in 2021
New Delhi:
Total inflows of foreign direct investment (FDI) to India fell to $74.01 billion in calendar year 2021, which is 15 percent lower than the $87.55 billion recorded the previous year, the government said on Wednesday.
Foreign direct investment inflows include inflows of equity capital, equity capital of unincorporated institutions, reinvested profits and other capital.
“FDI is largely a matter of commercial business decisions and the influx of FDI depends on many factors, such as the availability of natural resources, market size, infrastructure, political and general investment climate, as well as macroeconomic stability and investment decisions by foreign investors. In calendar year 2021, foreign direct investment inflows decreased by 15 percent compared to calendar year 2020,” Commerce Secretary Som Parkash said in a written response to a question in the Lok Sabha.
To promote FDI, the government has introduced an investor-friendly policy with most sectors, except certain strategically important sectors, open to 100 percent FDI through the automatic route. In addition, foreign direct investment policy is under constant review to ensure India remains an attractive and investor-friendly destination, the minister said.
