United States second biggest FDI source for India during first half of FY 2020-2021

As per the data made available by the commerce and industry ministry, the United States has emerged as the second-biggest source of Foreign Direct Investment (FDI) for India during April-September 2020. It replaced Mauritius during the first half of the Financial Year 2020.

The data showed by the Department for Promotion of Industry and Internal Trade, India had attracted FDI worth USD 7.12 billion from the United States and USD 2 billion from Mauritius, which slipped to 4th position during April-September 2020.

Earlier during the same period in 2019-20, Mauritius was the second-biggest source of FDI and the US was the fourth biggest investor in India. Singapore with an investment of USD 8.30 billion in India retains its position on top in April-September 2020.

Increase of foreign inflow in India:

In India, the foreign inflow has grown by 15% to USD 30 billion in the first half of the financial year 2020-2021. In August 2020, India has attracted USD 17.5 billion worth of foreign investments. The data reflects the cordial economic ties of India with countries even with the pandemic's effect on the world economy.

What does the increased foreign inflow from the US indicate?

The increasing Foreign Direct Investment from the United States reflects the further strengthening of economic ties between the two nations. The United States was also the top trading partner of India in Financial Year 2019-20.

The foreign inflow clearly indicates that technology companies in the US are buying stakes in Indian companies which is showing the increase in FDI numbers.

Foreign inflow in India from other countries:

Mauritius maintains its significance as an investor in India:

Despite the fact that the foreign inflows from Mauritius have been coming down, it still accounts for 29% of the total inflows that have been received during April 2000 and September 2020. In this time period, India has attracted USD 500.12 billion in foreign direct investment.