New milestone achieved, as FDI in India climbs to $500 billion

This is one of the biggest and the most significant numbers achieved, almost 30 years since liberalization.  Amidst the sluggish recovery from the pandemic and policy-induced economic downturn, there some good news to cheer about, as Foreign Direct Investment (FDI), a monetary infusion made by Multinational, foreign companies in the Indian Market has climbed its way to the small, yet significant peak of an amount, equivalent to $500 billion (US Dollars). Although the economic shackles, lead by a socialist ideology, were partially broken in the year 1991, with the LPG policy, this accumulation of resources was accounted for 20 years between April 2000 to September 2020.

This, as in pursuance to the aggregated data released by the  Department for Promotion of Industry and Internal Trade (DPIIT), the inflows during the period stood at $500.12 billion.

This is said to be a much-needed boost for the Indian economy, that has been observing a free fall in its prospects for the past 2 years. This will also help in reinforcing its prowess and potential as an international investment destination.

According to information available, 29% of the FDI came via the Mauritius route. It was duly followed by Singapore at 21 per cent, the United States, the Netherlands (Holland), Japan at  7%, and the United Kingdom at 6%.

A more elaborate analysis of the data shows the contribution of Mauritius at a whopping $144.7 billion along with Singapore $106 billion, in the sam aforementioned time span.

As far as the yearly account of the same is concerned, the Indian market received an amount of $40 billion in FDI in 2015-16, an increase of 35 per cent over the year prior to that. In 2016-17, 2017-18, 2018-19 and 2019-20, the inflow of resources stood at $43.5 billion, $44.85 billion, $44.37 billion and $50 billion, respectively.

Although in a positive spirit, observers say, that India has a long way to go, before matching its neighbours in the Asia-Pacific.


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