India Reported total FDI inflow of US$ 74.01 billion in the calendar year 2021

The total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings and other capital. During the calendar year 2021, total FDI inflow of US$ 74.01 billion has been reported in India. The State wise details are maintained only for FDI equity component and are given below in ANNEXURE – I.

As per Reserve Bank of India (RBI) data, total FDI inflow of US$ 74.01 billion has been reported in calendar year 2021 compared to US$ 87.55 billion in 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 resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors. In 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 an 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.

ANNEXURE – I

STATEMENT ON STATE WISE FDI EQUITY INFLOW
FROM January 2021 to December 2021

Total FDI inflow includes equity inflow, equity capital of unincorporated bodies,   re-invested earnings and other capital. State-wise details are maintained only for equity component of FDI inflow.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.