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

ADNOC signs 15-year LNG deal with Indian Oil

Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand. Abu Dhabi National Oil Company (ADNOC) has signed

Pakistan’s Economy Held Hostage by Military

Despite the crisis-ridden economy merely managing to survive on IMF loans, the military seems to be facing no constraints on its spending spree on weapons such as tanks and planes….reports Asian Lite

Xi to Personally Welcome Modi, Putin   

Analysts suggest that Xi is intent on using the Tianjin summit to showcase an emerging multipolar world order, distinct from Western-led institutions Chinese President Xi Jinping will personally welcome Prime Minister Narendra

‘Ukraine Banks On India For Peace’

Zelensky says Kyiv was relying on “India’s contribution” to bring the conflict to a close, emphasising that New Delhi’s long-standing commitment to peace and dialogue gave it a unique role in global
Go toTop

Don't Miss

US kick-starts five-week H1-B visas renewal drive

Up to 20,000 qualified nonimmigrant workers can renew their H-1B

Why Indian Approach and Signalling for COP26 Makes Sense

In recent years, Indian government has promoted electric vehicles and