India's FDI inflow at $74.01 billion in 2021

24 Mar 2022 , 02:23 PM

As per Ministry of Commerce & Industry data released on Wednesday, India’s total FDI inflow of US$ 74.01 billion during the calendar year 2021. The total FDI inflow includes equity inflow, the equity capital of unincorporated bodies, re-invested earnings and other capital.

As per Reserve Bank of India (RBI) data, a total FDI inflow of US$ 74.01 billion has been reported in the calendar year 2021 as compared to US$ 87.55 billion in the calendar year 2020.  

FDI is largely a matter of commercial business decisions and FDI inflow depends on a host of factors such as availability of natural resources, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors. In the calendar year 2021, the FDI inflow decreased by 15% as compared to the calendar year 2020.  

To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein most sectors except certain strategically important sectors are open for 100% FDI under the automatic route. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive and investor friendly destination. Changes are made in the policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations.

Government has recently undertaken a number of reforms across sectors. In the recent past, reforms in the FDI policy have been undertaken in sectors such as Insurance, Petroleum & Natural Gas, Telecom etc.