FDI into India in 9 months of FY21 at Rs 3.83 lakh cr; Gujarat and Maharashtra account for 68%

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Gujarat attracted foreign direct investment (FDI) worth Rs 1.58 lakh crore in the first nine months of pandemic-hit FY21, thus topping the country in this crucial parameter of investment, recently published Union government data shows. According to the figures of Department for Promotion of Industry and Internal Trade (DIPP), the second-ranked state is Maharashtra that attracted FDI worth Rs 1.01 lakh crore in the same period.

The FDI flow in the entire country between April and December 2020 stood at Rs 3,83,000 crore. Incidentally, the FDI in the entire country in 2019-20 was Rs 3,53,558 crore and that in 2018-19 was Rs 3,09,867 core.

Thus, even in the COVID-hit year, the FDI in the first nine months was 108% of that of the entire preceding financial year.

Gujarat, Maharashtra get 68% of FDI

The DIPP figures reveal Gujarat and Maharashtra together accoun  ted for almost 68% of the nation’s total FDI in the first three quarters of the last financial year.

The third rank went to Karnataka with FDI to the tune of Rs 47,413 crore. Delhi with Rs 31,343 crore was in fourth place followed by Tamil Nadu with Rs 12,502 crore.

The last five states in the list are Chhattisgarh (Rs 0.18 crore), Jammu & Kashmir (Rs 1.5 crore), Tripura (Rs 3.24 crore), Arunachal Pradesh (Rs 40 crore) and Assam (Rs 77.7 crore).

West Bengal attracted about Rs 3,000 crore (0.78% of the country’s share) of foreign direct investment. Uttar Pradesh, the largest state, got Rs 2,365 crore (0.61%).

“This FDI figure shows that foreign investors are increasingly reposing their confidence in India. Otherwise, FDI in the first nine months of the COVID-hit year could not have surpassed the figure of the entire preceding year,” said Subhasish Roy, deputy director general of MCC Chamber of Commerce and Industry.

DIPP data revealed that the sectors to account for most of the investment are in computer software and hardware (13.3%), telecommunication (7.22%), trading (5.7%), construction development (4.98%), automobile (4.87%).

The service sector that includes finance, banking, insurance, non-finance, outsourcing, R&D accounted for 16.47% of the total FDI flows into the country.

The country from where these investments came were Mauritius (28.03%), Singapore (21.74%), the US (8.17%), the Netherlands (6.97%), Japan (6.62%), the UK (5.76%), Germany (2.43%), Cyprus and UAE (2.1%) and Cayman Islands (1.93%).