FDI inflow in India is consistently rising
FDI inflow in India is rising and reported to be US$ 67.54 billion from April to December 2020. It is reported to be the highest ever for the first ninth months of a financial year and 22% higher as compared to the first ninth months of 2019-20 (US$ 55.14 billion).
There is an observed rise in FDI equity inflow as well. FDI equity inflow grew by 40% in the first nine months of F.Y. 2020-21 (US$ 51.47 billion) compared to the year-ago period (US$ 36.77 billion). At the quarterly level, there is a rise too. In the 3rd Quarter of 2020-21 (US$ 26.16 billion), FDI inflow increased by 37 % in comparison to the 3rd quarter of 2019-20 (US$ 19.09 billion).
Foreign Direct Investment (FDI) is a major driver of economic growth and an important source of non-debt finance for the economic development of India. The government is striving to enable investor-friendly FDI policy, remove the policy bottlenecks that have been hindering the investment inflows, and to a great extent attempt is bearing fruits. It can be seen from the reported number. The government is trying to liberalize and simply FDI norms in various sectors.