May 30, 2021
1 min read

US becomes second largest source of FDI in India

During the last financial year, India attracted $5.64 billion in FDI from Mauritius…reports Asian Lite News

The US replaced Mauritius as the second-largest source of foreign direct investment (FDI) into India during 2020-21 with inflows of $13.82 billion, according to government data. Singapore remained the top source of foreign direct investment into the country for the third consecutive fiscal at $17.41 billion.

During the last financial year, India attracted $5.64 billion in FDI from Mauritius, according to the data by the Department for Promotion of Industry and Internal Trade (DPIIT). The island country was followed by UAE ($4.2 billion), Cayman Island ($2.79 billion), Netherlands ($2.78 billion), UK ($2.04 billion), Japan ($1.95 billion), Germany ($667 million), and Cyprus ($386 million).

Overall foreign direct investments into the country grew 19 percent to $59.64 billion during 2020-21 amid measures taken by the government for policy reforms, investment facilitation and ease of doing business. Total FDI, including equity, re-invested earnings and capital, rose 10 percent to the highest-ever $81.72 billion, as against $74.39 billion in 2019-20.

In 2020-21, the computer software and hardware sector attracted the highest inflows of $26.14 billion. It was followed by construction – infrastructure activities ($7.87 billion) and services sector ($5 billion). Commenting on the data, Mithun V Thanks, Partner – M&A, Private Equity and General Corporate at Shardul Amarchand Mangaldas & Co, said tax reasons aside, US-based entities have historically been bullish on the India story.

“This is expected to continue in the next few years, with the pandemic driven focus on increased tech adaptation and integration. Silicon Valley will continue to weave many a-billion-dollar sized dreams, at the sheer size of the Indian market – and added to the cash crunch at the domestic level – should present agreeable valuations,” he said.

He added that with the increased cash being introduced in the US economy, it is likely that a chunk of this will flow into India as well. “The prevailing polity of anti-China sentiments in India (and in the US) is likely to provide the continuing last-mile impetus,” he said.

ALSO READ: Biden pitches mammoth $6 trillion budget

Previous Story

Biden’s $6tn budget plan draws mixed reviews

Next Story

Boris marries Symonds in intimate ceremony

Latest from -Top News

US-India ties is a slow-motion catastrophe

For the first time in two decades, Trump’s actions, statements, and coercive tone have made relations with the US a combustible domestic political issue in India, writes Manoj Menon The post-globalisation uncertainty

Modi Welcomes Marcos Jr to Delhi

PM Modi Welcomes Philippines President Marcos Jr to Strengthen India-Philippines Ties…reports Asian Lite News Prime Minister Narendra Modi on Tuesday warmly welcomed Philippines President Ferdinand R. Marcos Jr at Hyderabad House in

Is Bangladesh Turning Into a Theocratic State?

The rise of radical Islamic influence under Yunus’s watch threatens to transform Bangladesh from a secular democracy into a theocratic state….writes Anna Mahjar-Barducci Nobel Peace Prize laureate Muhammad Yunus’s transition from economist

Post-370 Kashmir Reinvents Itself

The developments suggest that Kashmir’s post-abrogation journey is not merely political – it is profoundly social, economic, and cultural….writes Shashikant Trivedi Six years after the abrogation of Article 370, Jammu and Kashmir

Munir’s Soft Coup in Uniform

From Beijing to Washington, Asim Munir has emerged as Pakistan’s most visible face on the international stage….reports Asian Lite News As Pakistan’s powerful Army Chief, Field Marshal Asim Munir, concluded yet another
Go toTop

Don't Miss

Jaishankar chairs Parliamentary panel meet, discusses India-US ties

This is despite the fact that India didn’t oppose when

Shah assures full support to people of rain-battered Uttarakhand

Shah said that timely warnings by the Central government helped