Foreign direct investment (FDI) in India was introduced in 1991 under the Foreign Exchange Management Act (FEMA). It was implemented by the then finance minister, Dr. Manmohan Singh.
FDI in India is a section of “Recent Economic Current Affairs“ related to India. Here we provide some important information on FDI inflows in India. In various competitive exams, several questions from this topic are asked such as: Which country is the highest FDI provider in India? Which state received the most FDI?
Read the article to know all major FDI stats and the latest FDI Current Affairs for upcoming competitive exams.
What is FDI?
FDI or Foreign Direct Investment is an investment made by a company or an individual in a business interest located in another country.
FDI data India (Financial Year 2021-22)
• India recorded an all-time high annual FDI inflow of USD 85.00 billion in the financial year 2021-22.
• In 2014-2015, FDI inflows into India stood at just US$ 45.15 billion, compared to a peak annual FDI inflow of US$ 85 billion reported in FY 2021-22.
• In the fiscal year 2020-21, FDI inflows to India stood at US$ 81.97 billion, surpassing last year’s FDI by US$ 3.03 billion, despite military operations in Ukraine and the Covid-19 pandemic.
FDI inflows during the last four Year
• Details of the total FDI inflows reported for the last four financial years are as follows:
| S. No. | Financial Year | Amount of FDI inflows (in USD billion) |
|---|---|---|
| 1. | 2018-19 | 62.00 |
| 2. | 2019-20 | 74.39 |
| 3. | 2020-21 | 81.97 |
| 4. | 2021-22 | 85.00 |
Rank of India in FDI 2022
• According to the United Nations Conference on Trade and Development (UNCTAD), India has jumped one position to the 7th position among the top recipients of foreign direct investment (FDI) in the last calendar year (2021).
Top 10 FDI Recipient’s countries
FDI inflows by country
Here are the top 10 countries in terms of FDI inflows in 2021.
| S. No. | Country | FDI inflows (in billion U.S. dollars) |
|---|---|---|
| 1. | United States | 367 |
| 2. | China | 181 |
| 3. | Hong Kong | 141 |
| 4. | Singapore | 99 |
| 5. | Canada | 60 |
| 6 | Brazil | 50 |
| 7 | India | 45 |
| 8. | South Africa | 41 |
| 9 | Russia | 38 |
| 10 | Mexico | 32 |
Highest FDI Contributors Country-wise
The 5 largest investors of FDI in India:
- Singapore (27.01%)
- USA (17.94%)
- Mauritius (15.98%)
- Netherlands (7.86%)
- Switzerland (7.31%)
FDI in India 2021-22 state wise
Top 5 States receiving the highest FDI Equity Inflow during FY 2021-22 :
- Karnataka (37.55%),
- Maharashtra (26.26%),
- Delhi (13.93%),
- Tamil Nadu (5.10%) and
- Haryana (4.76%)
Top 5 sectors receiving the highest FDI
Top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 :
- Computer Software & Hardware (24.60%)
- Services Sector (Banking, Insurance, Non-Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%)
- Automobile Industry (11.89%)
- Trading 7.72%
- Construction (Infrastructure) Activities (5.52%).
Frequently Asked Questions (FAQ)
Answer. Singapore is the highest (27%) FDI provider in India.
Answer: $85 billion (FY 2021-22)
Answer: 7th Rank
Answer: Karnataka (37.55%/ FY-2021-22)
Answer: USA
NEED FDI INFLOWS DATA FROM INDIA TO GCC SINCE 1991