Home Finance News FDI inflow hits all-time high of USD 83.57 billion in 2021-22

FDI inflow hits all-time high of USD 83.57 billion in 2021-22


New Delhi: The government on Friday said India recorded the “highest ever” annual foreign direct investment of $83.57 billion in 2021-22. In 2020-21, the inflows were $81.97 billion. FDI equity inflows in manufacturing rose 76% in FY22.

FDI increased by around 22% post-Covid from March 2020 to March 2022 at $171.84 billion, in comparison to the inflows of $141.10 billion reported pre-Covid from February 2018 to February 2020, according to a statement issued by the commerce and industry ministry.

The fiscal 2022 inflows exceeded the previous year’s FDI by $1.6 billion, despite disruptions from military operation in Ukraine and the Covid-19 pandemic, it said.

FDI equity inflows in manufacturing sectors increased 76% in FY22 at $21.34 billion, compared to $12.09 billion in the year before.


“India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector,” the ministry said.

Singapore was the topmost investor in India last fiscal year, accounting for 27% of the FDI, followed by the US at 18% and Mauritius at 16%.

Computer software and hardware emerged as the top recipient sector of FDI equity inflows during the last fiscal year with an around 25% share, followed by the services and automobile sectors, both at 12%.

Karnataka was the top recipient state with a 38% share of the total FDI equity inflows reported during the 2021-22, followed by Maharashtra (26%) and Delhi (14%).

The government reviews the FDI policy on an ongoing basis and makes significant changes from time to time to ensure that India remains an attractive and investor friendly destination, the ministry said.


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