India attracts 38% higher FDI in April at $6.24 billion

NEW DELHI: In a sign that investors remain confident about the prospects of the Indian economy despite the COVID-19 pandemic, the country attracted FDI inflows of $6.24 billion in April, a 38 per cent growth over the inflows received in the corresponding month of the previous year. In April last year, total FDI inflows stood at $ 4.53 billion.

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

According to government data, in April this year, FDI equity inflows amounting to $4.44 billion were reported in the country, which is also an increase of 60 per cent over the FDI equity inflows of April 2020 ($2.77 billion). Equity inflows bring in the necessary capital to boost industrialisation.

Mauritius has regained the top spot among the countries investing in India, accounting for 24 per cent of 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 31 per cent share of the total FDI equity inflows, followed by Maharashtra (19 per cent) and Delhi (15 per cent).

An official statement said that the measures taken by the government on Foreign Direct Investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country.

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

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