Foreign direct investment inflows to India fell in 2021
New Delhi:
Total foreign direct investment (FDI) inflow to India declined to $74.01 billion in the calendar year 2021, which is 15 per cent lower from $87.55 billion recorded in the previous year, government said on Wednesday.
The FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings and other capital.
“FDI is largely a matter of commercial business decisions and FDI inflow depends on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors. In calendar year 2021, the FDI inflow decreased by 15 per cent as compared to calendar year 2020,” Minister of State for Commerce Som Parkash said in a written reply to a question in the Lok Sabha.
To promote FDI, the government has put in place an investor-friendly policy, wherein most sectors except certain strategically important sectors are open for 100 per cent FDI under the automatic route. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive and investor-friendly destination, the minister said.
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