India Received Highest Ever FDI in FY 2020-21, Breaks All Records Despite COVID-19


Foreign Direct Investment or FDI, has always been the utmost priority, for any country.

During the last one year, while most of the countries were struggling to get fresh investments due to COVID-19, India has recorded the all time high in getting FDI.

In a big, &  positive side for India, the foreign Direct investment has jumped by 16% on an year on year basis to over $27 billion and that's during April to August 2020.

This is considered to be the highest ever FDI for first five months of any given financial year in the history of India. 

According to the ministry of commerce and industry, Government of India, the total FDI includes reinvested earnings that has grown by 13% year on year to over $35.75 billion.

The ministry has also stated that the total FDI inflow has grown by 55% in the last six years from 2014 to 2020 to over $358.29 billion.

In the year 2019, India was among the TOP-10 countries that attracted the most foreign Direct investment.

Now, also during and after the COVID, a swift response in combating the covid crisis, the favorable demographics, mobile and internet penetration with their massive consumption as well as technology updates, have been the key reasons behind the rise in FDI inflow to India.

These trends have clearly been an endorsement for India in bringing an status as a preferred investment destination among the global investors.

Now, on the other hand, as the global cooperation is getting disillusioned with China, there is a great opportunity for India to capitalize the corporate community which is moving out of that country.

India can gain from the possible exit of companies from China. it's where the big players are looking towards India as the best alternative investment destination for their new setup.

The Indian government, during this post covid situation, is very actively engaging the foreign investors. 

In order to welcome new FDI, India is also easing the foreign investment policies and taking serious steps in removing regulatory hurdles for the foreign investors to provide them a more stable business environment. 

The government, is targeting to invite FDI worth over $800 billion in years to come.

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