India's FDI Inflows Grew by 81% in Nov 2020

India’s FDI witnessed significant growth in November 2020. FDI data released by the Commerce Ministry shows that total FDI in the month of November 2020 grew by 81 percent to $10.15 billion against $5.6 billion in November 2019. The data also confirmed that the FDI equity jumped to $8.5 billion as against $2.8 billion in November 2019, registering a growth of 70 percent.

During April to November 2020, India has attracted total FDI inflow of $58.37 billion, the highest ever for the first eight months of financial year and 22 percent higher as compared to the first eight months of 2019-20 ($47.67).

The data also revealed that FDI equity inflow received during FY2020-21 (April to November 2020) in $43.85 billion. It is also the highest ever for the first eight months of a financial year and 37 percent more compared to the first eight months of 2019-20 ($32.11 billion).

The Commerce Ministry said that as FDI is a major driver of economic growth and an important source of non-debt finance for the economic development of India, the government endeavour to put in place an enabling and investor-friendly FDI policy.

The Ministry also said that the intent all this while has been to make the FDI policy more investment-friendly and remove the policy bottlenecks that have been hindering the investment inflows into the country. It added that the steps taken in this direction has borne fruit as is evident from the constantly increasing volume of FDI inflows being received into the country.

Measures taken by the Government on the FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India's Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors.