India Gets Highest Annual FDI Inflow Of $83.57 Billion In FY22; Karnataka Bags Lion's Share Of Investment At 38 Per Cent

India has recorded highest ever annual foreign direct investment (FDI) inflow of $83.57 billion in the financial year 2021-22 overtaking last year's FDI by $1.60 billion.

In the financial year 2020-21, the total FDI inflows in the country stood at $81.97 billion.

In a statement on Friday (20 May), the Ministry of Commerce and Industry said that FDI Inflows in FY22 increased despite "military operation in Ukraine and COVID-19 pandemic".

The ministry noted that India's FDI inflow stood at $45.15 billion in FY15.

"India’s FDI inflows have increased 20-fold since FY03-04, when the inflows were $4.3 billion only," it added.

The ministry said that the total FDI inflows during FY19 were $62 billion while in FY20, the inflows stood at $74.39 billion.

In FY21, the total inflows recorded stood at $81.97 billion, which increased by $1.60 billion in FY22 to $83.57 billion.

The ministry added that India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector.

"FDI Equity inflow in Manufacturing Sectors have increased by 76 per cent in FY 2021-22 ($21.34 billion) compared to previous FY 2020-21 ($12.09 billion)," the ministry said.

In terms of top investor countries of FDI Equity inflow, ‘Singapore’ is at the apex with 27 per cent, followed by USA (18 per cent) and Mauritius (16 per cent) for the FY 2021-22.

‘Computer Software & Hardware’ has emerged as the top recipient sector of FDI Equity inflow during FY 2021-22 with around 25 per cent share followed by Services Sector (12 per cent) and Automobile Industry (12 per cent) respectively.

Under the sector `Computer Software & Hardware’, the major recipient states of FDI Equity inflow are Karnataka (53 per cent), Delhi (17 per cent) and Maharashtra (17 per cent) during FY 2021-22, the ministry said.

Karnataka is the top recipient state with 38 per cent share of the total FDI Equity inflow reported during the FY 2021-22 followed by Maharashtra (26 per cent) and Delhi (14 per cent).

According to the ministry, majority of the equity inflow of Karnataka has been reported in the sectors `Computer Software & Hardware’ (35 per cent), Automobile Industry (20 per cent) and `Education’ (12 per cent) during the FY 2021-22.