New Delhi: India has crossed an important landmark of $500 billion, in Foreign Direct Investment (FDI), over the last 20 years. In terms of Indian rupees, India has succeeded in attracting FDI of ₹37 trillion. There has been a major spurt in the FDI since the year 2015-16. Since the last five years, FDI worth $40 billion is coming into the country and in the financial year, 2019-20 saw FDI worth $50 billion. It was recently announced that during the current year, the FDI in the first half of the year has crossed $30 billion. As per the statistics shared by the ‘Department of Promotion of Industry and Internal Trade’ (DPIIT), FDI worth $500.12 billion has come into India between September 2000, till date. Maximum FDI has come from Mauritius. The statistic released by the DPIIT clarifies that 29% of the FDI has come to India, through the Mauritius route.
Following Mauritius, Singapore comes second @21%. FDI received from the United States, Japan and the Netherlands is 7% each and the United Kingdom is at 6%. As per the report, $144.71 billion have come from Mauritius and $106 billion have come from Singapore. Major FDI has come even from Germany, Cyprus, France and Cayman Islands.
The flow of FDI increased substantially since the financial year 2015-16. India succeeded in attracting FDI of $40 billion during that year. This investment was more by 35% than the previous year. Thereafter, FDI of $43.5 billion in 2016-17, $44.85 billion in 2017 -18, $44.37 billion in 2018-19 and of $50 billion in 2019-20, came into the country. According to this, FDI of $222 billion has come into the country in the last five years. Whereas, the FDI in the first half of this year stands at $30 billion, taking the total FDI over six years to over $250 billion. The services sector, Computer hardware and software, telecommunications, automobiles, construction industry, chemicals, the pharmaceuticals industry has received the maximum FDI. In 1999, the Foreign Exchange Management Act (FEMA) was introduced. The archaic FERA was replaced with FEMA. As per analysts, the doors to FDI were opened with this change. As per analysts, attracting this FDI of half a trillion dollars, over 20 years, underlines that India is a preferred destination for investment.