Gross FDI inflow up by 39.8% YoY in April

In April’ 2021, gross FDI The inflow level is higher in comparison to 2019 as well implying strong recovery with beating the damage caused to investment due to second wave of COVID-19. increased by 39.8% year on year (yoy) and FDI in equity increased by 60% yoy aided by low base. The inflow level is higher in comparison to 2019 as well implying strong recovery with beating the damage caused to investment due to second wave of COVID-19.

Gross inflows includes FDI in equity, reinvested earnings, equity capital of unincorporated bodies and other capital, which hit US$ 6.24 billion in April 2021 incomparison to US$ 4.53 billlion in 2020. The domestic investment has remained low in recent years while the inflows show a robust growth. Investment is critical for economy’s recovery as the private consumption hit hard due to the disruption caused by the pandemic. In future, a big challenge would be sustain the growth in FDI, after the low base effect fades away.

According to World Investment Report 2021 by the UN Conference on Trade and Development (UNCTAD), FDI inflow in India increased by 27% reaching US$ 64 billion in 2020 while world’s saw a decline in FDI inflow by 35% in the same period. Computer Software & Hardware,  services  and education are the top sectors to receive FDI in April. Karnataka, Maharashtra and Delhi were the leading states to attract FDI in April.