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$83 bn in FY22: FDI will play a significant role in India’s future economic development

Despite pandemic-related uncertainties, India remains a favourable destination for foreign investment. In 2021, around 44 per cent of 1,200 global business heads in developed economies were planning to make first-time or additional investments in India.

Several nations said that they found India a lucrative destination because of its domestic market, and not only as a hub for exports.

Gross Foreign Direct Investment (FDI) inflows increased, from $82 billion in FY 2021 to $83.6 billion in FY 2022.

Several sectors remained attractive to investors, including FMCG, IT, pharma, financial services, etc. Some of the top countries from where equity inflows were recorded were Singapore ($11.69 billion), the US ($7.52 billion) and Mauritius, apart from the UK, Cayman Islands, and Netherlands.

India’s favourable business landscape and supportive government policymaking have increased the ease of doing business in the country.

Investor confidence has risen with a strong vaccination rate, recovery stimulus packages, and foreign investment programmes. Moreover, the nation is committed to a serious sustainability agenda, in sync with global money managers' green and transition assets.

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