FDI in India 2022: Karnataka and Maharashtra were the highest FDI states in India in Financial Year 2021-2022, as per recent statement from the union government. While Karnataka recieved 37.55 percent of the FDI equity inflows in India, Maharashtra received 26.26 percent of the FDI inflows in India in FY 2021-22.
The highest FDI in India was from two countries Singapore and USA in FY 2021-22, with Singapore accounting for 27.01 percent of the FDI equity inflows in India and US with 17.94 percent. These two countries emerged as top 2 sourcing nations in FDI equity flows into India in the financial year, followed by Mauritius with 15.98 percent FDI, Netherland with 7.86 percent FDI and Switzerland with 7.31 percent FDI in India.
India also improved its position by one place to jump to the 7th position among the top 20 host economies for 2021, as per the UNCTAD World Investment Report (WIR) 2022 after analysis of global FDI inflow trends.
India’s manufacturing sector reported the highest FDI equity inflow with the investment increasing by almost 76 percent (USD 21.34 billion) in FY 2021-22 in comparison to previous FY 2020-21 (USD 12.09 billion).
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FDI inflow in India 2021-2022
India received the highest annual FDI worth USD 84,835 million in FY 21-22 despite the pandemic situation across the globe. The FDI inflow in India in 2021-22 overtook FDI by USD 2.87 billion.
The FDI inflows in India had increased earlier to USD 81,973 million in FY 20-21 from USD 74,391 million in FY 19-20.
Top 5 sectors with highest FDI Equity Inflow in FY 2021-22
1. Computer Software & Hardware -24.60%
2. Services Sector (Insurance, Banking, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis) -12.13%
3. Automobile Industry -11.89%
5. Construction (Infrastructure) Activities -5.52%
Top 5 states with highest FDI Inflow during FY 2021-22
1. Karnataka -37.55%
2. Maharashtra -26.26%
3. Delhi -13.93%
4. Tamil Nadu – 5.10%
5. Haryana- 4.76%
The Indian government has implemented several transformative reforms under its FDI policy across several sectors including manufacturing, defence, civil aviation, retail, telecom, retail trading, insurance, pharmaceuticals, e-commerce and construction & development.
India reported FDI from 101 countries during FY 2021-22, while in FY 2020-21 FDI was reported from 97 countries.
India has now allowed 100 percent FDI in non-critical sectors through automatic route, which does not require security clearance from the Home Ministry. The prior-government approval is required only in sensitive sectors including defence, telecom, media, private security agencies, civil aviation, mining and satellites.