India receives highest-ever FDI inflow of $83.57 bn in FY22: Govt

The central government announced on Friday that India has recorded the highest ever annual FDI inflow of $83.57 billion during FY22. 

"In 2014-2015, FDI inflow in India stood at mere $45.15 billion as compared to the highest ever annual FDI inflow of $83.57 billion reported during the financial year 2021-22 overtaking last year's FDI by $1.60 billion despite military operation in Ukraine and COVID-19 pandemic," noted the Ministry of Commerce & Industry in an official statement. 

India's FDI inflows have jumped 20-fold since FY03-04 when the inflows were at $4.3 billion.

The ministry added that India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector.  FDI equity inflow in manufacturing sectors have increased by 76 per cent in FY22 at $21.34 billion) compared to the previous year's $12.09 billion.

It may be noted that FDI inflow has increased by 23 per cent post-Covid i.e. March 2020 to March 2022 at $171.84 billion in comparison to FDI inflow reported pre-Covid i.e. February 2018 to February 2020 at $141.10 billion.

"The steps taken by the Government during the last eight years have borne fruit as is evident from the ever-increasing volumes of FDI inflow being received into the country, setting new records," added the ministry. 

In terms of top investor countries of FDI Equity inflow, 'Singapore' is at the apex with 27 per cent, followed by USA with 18 per cent and Mauritius with 16 per cent for the FY 2021-22.'Computer Software & Hardware' has emerged as the top recipient sector of FDI Equity inflow during FY22 with around 25 per cent share followed by Services Sector with 12 per cent and Automobile Industry with 12 per cent respectively.

Under the sector `Computer Software & Hardware', the major recipient states of FDI Equity inflow are Karnataka (53 per cent), Delhi (17 per cent) and Maharashtra (17 per cent) during FY22. Karnataka is the top recipient state with 38 per cent share of the total FDI Equity inflow reported during the FY 2021-22 followed by Maharashtra (26 per cent) and Delhi (14 per cent). Majority of the equity inflow of Karnataka has been reported in the sectors `Computer Software & Hardware' (35 per cent), Automobile Industry (20 per cent) and `Education' (12 per cent) during the FY 2021-22.

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