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FDI in India 2022: Karnataka and Maharashtra are the highest FDI state in India in the 2021-2022 financial year, in accordance with the recent statement from the Union government. While Karnataka received 37.55 percent of FDI’s equity entry flow in India, Maharashtra received 26.26 percent of FDI entry flow in India in the FY 2021-22.
The highest FDI in India came from two Singapore and US countries in TA 2021-22, with Singapore accounted for 27.01 percent of FDI equity entry flows in India and the US with 17.94 percent. The two countries emerged as the top 2 sources in the FDI equity flowing to India in the financial year, followed by Mauritius with 15.98 percent of FDI, the Netherlands with 7.86 percent of FDI and Switzerland with 7.31 percent of FDI in India.
India also increased its position with one place to jump to the 7th position among the 20 top host economies for 2021, in accordance with the 2022 World Investment World Investment Report after Analysis of FDI Global Flow Trends.
The Indian manufacturing sector reported the highest FDI equity flow with an investment of almost 76 percent (USD 21.34 billion) in the FY 2021-22 compared to the previous FY 2020-21 (USD 12.09 billion).
FDI Inflow in India 2021-2022
India received the highest annual FDI worth USD 84,835 million in TA 21-22 despite the Pandemic situation worldwide. FDI flow in India in 2021-22 followed FDI with USD 2.87 billion.
The FDI inflows in India had increased earlier to USD 81,973 million in FY 20-21 from USD 74,391 million in FY 19-20.
Top 5 sectors with highest FDI Equity Inflow in FY 2021-22
1. Computer Software & Hardware -24.60%
2. Services Sector (Insurance, Banking, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis) -12.13%
3. Automobile Industry -11.89%
4. Trading-7.72%
5. Construction (Infrastructure) Activities -5.52%
Top 5 states with highest FDI Inflow during FY 2021-22
1. Karnataka -37.55%
2. Maharashtra -26.26%
3. Delhi -13.93%
4. Tamil Nadu – 5.10%
5. Haryana- 4.76%
Background
The Indian government has implemented several transformative reforms under its FDI policy across several sectors including manufacturing, defence, civil aviation, retail, telecom, retail trading, insurance, pharmaceuticals, e-commerce and construction & development.
India reported FDI from 101 countries during FY 2021-22, while in FY 2020-21 FDI was reported from 97 countries.
India has now allowed 100 percent FDI in non-critical sectors through automatic route, which does not require security clearance from the Home Ministry. The prior-government approval is required only in sensitive sectors including defence, telecom, media, private security agencies, civil aviation, mining and satellites.
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