India attracted highest ever total FDI inflow of US$ 81.72 billion during 2020-21



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India has achieved its highest ever Foreign Direct Investment (FDI) inflow, attracting US$81.72 billion during the financial year 2020-21. This represents a 10% increase compared to the previous year. Government reforms in policy, investment facilitation, and ease of doing business are credited with boosting India's appeal to global investors. The 'Computer Software & Hardware' sector saw the most significant inflow, with Gujarat emerging as the leading recipient state.

Measures taken by the Government on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in Indias Foreign Direct Investment are an endorsement of its status as a
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FAQ :

India attracted a total FDI inflow of US$81.72 billion during the financial year 2020-21.

The total FDI inflow in 2020-21 was 10% higher than the US$74.39 billion recorded in the financial year 2019-20.

Singapore was the top investor country with a 29% share, followed by the USA (23%) and Mauritius (9%).

The 'Computer Software & Hardware' sector was the top sector, accounting for approximately 44% of the total FDI equity inflow.

Gujarat was the top recipient state with a 37% share, followed by Maharashtra (27%) and Karnataka (13%).

Yes, FDI equity inflow from the USA and the UK recorded increases of 227% and 44% respectively during FY 2020-21 compared to FY 2019-20.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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