According to the Department for Promotion of Industry and Internal Trade ( DPIIT), FDI (Foreign Direct Investment) in India, for the financial year 2019-2020, takes a major leap of 13% and has set its mark at USD 49.97 billion, which is about Rs.3.75 lakh crore and this skip has been the highest in the last four years.
The total of FDI into India, which includes reinvested earnings and other capital, saw an increase of 18%, from USD 62 billion in the last financial year to USD 73.45 billion in 2019-2020.
In the year 2018-2019, during the month of April-March, India received FDI of USD 44.36 billion. The sectors that drew the maximum foreign inflows include Services (at the highest) with$7.85 billion, computer software and hardware with $7.67 billion, trading with $4.57 billion, telecommunications with $4.44 billion, the automobile with $2.82 billion and lastly construction and chemicals with $2 billion and $1 billion.
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With USD 14.67 billion, for the second consecutive time, Singapore remained the largest source of foreign fund flows in India. However, this was lower than the last year’s investment which was USD 16.22 billion. Mauritius was the second highest (USD 8.24 billion) and then comes the Netherlands (USD 6.5 billion), the US (USD 4.22 billion), Cayman Islands (USD 3.7 billion), Japan (USD 3.22 billion), France (USD 1.89 billion), UK (USD 1.42 billion), Cyprus (USD 879 million) and Germany (USD 488 million).
FDI is known as one of the substantial instruments that readily enhance the economic growth of any country by helping them to strengthen their physical capital, create employment opportunities and many more to mention.