Foreign direct investment (FDI) in India increased by 40% to $ 51.47 billion during April-December 2020-21, according to government data released on Thursday.
India attracted 22% more FDI inflows (including reinvested income) of $ 67.54 billion during the first nine months of the current financial year as compared to $ 55.14 billion in the same period 2019-20.
“FDI equity inflows increased by 40% ($ 51.47 billion) in the first nine months of 2020-21,” the Ministry of Commerce and Industry said.
Inflows increased 37% to $ 26.16 billion in the third quarter of 2020–21 (October – December 2020).
In December, FDI rose 24% to $ 9.22 billion, the figure shows.
According to the ministry, FDI inflows into the country have increased as a result of measures taken by the government on fronts to improve FDI policy, facilitate investment and ease of doing business.
Foreign flows are a major driver of economic growth and an important source of non-debt finance for India’s economic development.
“The steps taken in this direction during the last six-and-a-half years have resulted from the increasing amount of foreign direct investment in the country. FDI is carried out by the government, following the path of liberalization and simplification. The ministry has Said that there has been improvement in FDI in various sectors.