India's FDI inflow climbs 38% to USD 6.24 billion in April

In a good sign of investors' confidence about the prospects of the Indian economy despite the COVID-19 pandemic, the country attracted a total Foreign direct investment (FDI) inflow of USD 6.24 billion during April 2021, which is 38 per cent higher than the inflows received in the corresponding month of the previous year.

As per the data issued by the Ministry of Commerce and Industry on Wednesday, India's FDI inflow USD 4.53 billion in April 2020.

Measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country, the government said in a statement.

Though the lower base of last year has helped push up FDI growth this year, in overall terms, the numbers reflect a return to the pre-pandemic levels of overseas investment in India.

Data from the government says that in April 2021, FDI Equity inflows amounting to USD 4.44 billion were reported in the country which is an increase of 60 per cent over the FDI Equity inflow of April 2020 (USD 2.77 billion).

In the same period, Mauritius is the top investing country with 24 per cent of the FDI Equity inflows, followed by Singapore (21 per cent) and Japan (11 per cent).

Computer software and hardware emerged as the top sector in April with around 24 per cent share of the total FDI equity inflows, followed by the services sector (23 per cent) and the education sector (8 per cent).

Karnataka emerged as the top recipient state in April with a 31 per cent share of the total FDI equity inflows, followed by Maharashtra (19 per cent) and Delhi (15 per cent).

The FDI trends are an endorsement of its status as a preferred investment destination among the global investors, the statement added.