Foreign direct investment (FDI) in India grew 40 percent to USD 51.47 billion during the April-December 2020-21, according to government data which was released on Thursday. India has attracted 22 percent higher FDI inflow (including re-invested earnings) of USD 67.54 billion during the first nine months of the current fiscal as against USD 55.14 billion in the same period of 2019-20.
"FDI equity inflow grew by 40 per cent in the first nine months of 2020-21 (USD 51.47 billion) compared to the year ago period (USD 36.77 billion)," the commerce and industry ministry said. The inflows increased by 37 per cent in the third quarter (October-December 2020) of 2020-21 to USD 26.16 billion.
The foreign inflows are a major driver of economic growth and an important source of non-debt finance for the economic development of India
In December, FDI surged 24 per cent to USD 9.22 billion, the data showed. The 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, according to the ministry.
The foreign inflows are a major driver of economic growth and an important source of non-debt finance for the economic development of India. "The steps taken in this direction during the last six and a half years have borne fruit, as is evident from the ever-increasing volumes of FDI inflows being received into the country. Continuing on the path of FDI liberalisation and simplification, government has carried out FDI reforms across various sectors," the ministry said.