India received the highest ever Foreign Direct Investment (FDI) for the first five months of a financial year during April-August 2020. The total FDI inflow into India in the first five months was $35.73 billion, according to the Ministry of Commerce and Industry. It is also 13 per cent higher than that in the same period last fiscal. The FDI equity inflow received during April- August 2020 stood at$27.10 billion, which is also the highest ever for the first 5 months of a financial year and 16 per cent more than the same period last year.
Indian received a significant amount of foreign investments in the months when the global economic conditions were fragile and investors were concerned about the mounting uncertainties due to the coronavirus pandemic. The ministry said that the measures taken by the government on the fronts of FDI policy reforms, investment facilitation, and ease of doing business have resulted in increased FDI inflows into the country.
FDI is a major driver of economic growth and an important source of non-debt finance for the economic development of India. It has been the endeavor of the government to put in place an enabling and investor-friendly FDI policy by removing the policy bottlenecks that have been hindering the investment inflows into the country, the government said. The steps taken in this direction during the last six years have borne fruit as is evident from the ever-increasing volumes of FDI inflows being received into the country, it added.
Meanwhile, the government has carried out FDI reforms in the last few years which has led FDI on the path of liberalization and simplification. The total FDI inflow grew by 55 per cent, from $231.37 billion during 2008-14 to $358.29 billion during 2014-20. Also, the FDI equity inflow also increased by 57per cent from $160.46 billion during 2008-14 to $252.42 billion during 2014-20.