The country recorded its highest annual foreign direct investment (FDI) inflow of $81.97 billion (provisional figure) in fiscal year 2020-21, according to the Ministry of Trade and Industry. FDI inflows in the last seven fiscal years (2014-21) were $440.27 billion, which is nearly 58 percent of total FDI inflows in the past 21 fiscal years (2000-2021: $763.83 billion).
The computer software and hardware sector accounted for the largest share of FDI inflow at 19 percent, followed by the services sector at 15 percent. Trading saw FDI inflows of eight percent, while the Telecommunications and Construction (Infrastructure) sector drew FDI inflows of seven percent each over the same period of the past seven years, according to data from the Ministry of Commerce.
The top five countries to receive FDI inflows in April 2014 and August 2021 are Singapore (28 percent), Mauritius (22 percent), the US (10 percent), the Netherlands (8 percent) and Japan (six percent). per cent).
According to the statement from the ministry, the government has taken steps to boost domestic and foreign investment in India. Some of these steps include lowering corporate tax rates, easing liquidity problems of NBFCs and banks, improving ease of doing business, reforming FDI policies, reducing the compliance burden, policies to boost domestic production through including public procurement.
To facilitate the investment, measures like India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), National Single Window System (NSWS) soft launch, National Infrastructure Pipeline (NIP), National Monetization Pipeline (NMP), have been installed, among others.