India records highest ever FDI in April-August 2020: Commerce and Industry Ministry

The Commerce and Industry Ministry informed on October 20, 2020, that India received its highest-ever Foreign Direct Investment (FDI) in April-August 2020, the first five months of the financial year.

Reportedly, FDI in India increased by 16% year-on-year to $27.1 billion during April-August. The ministry further informed that the total inflow of Foreign Direct Investment (FDI) in India in the first 5 months was $35.73 billion which 13% higher than in the same period last fiscal.

As per the Commerce and Industry Ministry the FDI equity inflow that has been received during FY21, April to August 2020, is $27.1 billion which is also the highest ever for the five months of a financial year.

India is preferred destination for Foreign Direct Investment under PM @NarendraModi ji's leadership

In last 6 years, FDI inflow ⬆️ 55%

During April-August 2020, despite COVID-19, FDI inflow ⬆️ 13%, Highest ever for first 5 months of a Financial Year

📖 https://t.co/1VaWV1SBR6 pic.twitter.com/aWa0cuvnxP

— Piyush Goyal (@PiyushGoyal) October 20, 2020

Reason for the increased FDI inflows:

The Commerce and Industry Ministry informed through a statement that the increased FDI inflows in India are because of the steps taken by the central government in the last six years.

Measures that have been taken by the government on FDI policy reform, ease of doing business and investment facilitation resulted in increased FDI inflows in the country. The current trend in the FDI policy of India is an endorsement of its status as a preferred investment destination amongst global investors.

What does the increased percentage of FDI indicate?

According to the Ministry, Foreign Direct Investment (FDI) is the major driver of economic growth. It is also an important source of non-debt finance for India’s economic development. The increased FDI clearly indicates the trust of global investors in India.

It further added that it has been the major focus of the central government to put in place an investor-friendly and enabling FDI policy. The purpose has been to make the policy more investor friendly and to remove the policies that have been hindering the investment inflows in the Indian market.