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FDI equity inflow grows by 168% in the first three months of F.Y. 2021-22 (US$ 17.57 billion) compared to the same corresponding period last year (US$ 6.56 billion)

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Ministry of Commerce & Industry Press Release dated 28 Aug 2021

FDI equity inflow grows by 168% in the first three months of F.Y. 2021-22 (US$ 17.57 billion) compared to the same corresponding period last year (US$ 6.56 billion)


Total FDI inflow of US$ 22.53 billion during first three months of 2021-22, i.e. April, 2021 to June, 2021 is much Higher as compared to US$ 11.84 billion in first three months of 2020-21

Total FDI inflow 90% higher in first three months of 2021-22, i.e. April, 2021 to June, 2021   as compared to first three months of 2020-21

‘Automobile Industry’ emerges as the top sector during the first three months of F.Y. 2021-22 with 27% share of the total FDI Equity inflow followed by Computer Software & Hardware (17%) and Services Sector (11%) respectivelyPosted Date:- Aug 28, 2021

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.

The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:

India has attracted total FDI inflow of US$ 22.53 billion during first three months of 2021-22, i.e. April, 2021 to June, 2021 which is 90% higher as compared to first three months of 2020-21 (US$ 11.84 billion).

  • FDI equity inflow grew by 168% in the first three months of F.Y. 2021-22 (US$ 17.57 billion) compared to the year ago period (US$ 6.56 billion).
  • ‘Automobile Industry’ has emerged as the top sector during the first three months of F.Y. 2021-22 with 27% share of the total FDI Equity inflow followed by Computer Software & Hardware (17%) and Services Sector (11%) respectively.
  • Under the sector `Automobile Industry’, majority of FDI Equity inflow (88%) was reported in the state of Karnataka during the first three months of the current financial year (2021-22).
  • Karnataka is the top recipient state during the F.Y. 2021-22 (upto June, 2021) with 48% share of the total FDI Equity inflows followed by Maharashtra (23%) and Delhi (11%).

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Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

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RBI/2021-22/91
DOR.FIN.REC.No.41/03.10.136/2021-22

August 25, 2021

All Housing Finance Companies (HFCs)

Dear Sir/ Madam,

Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

Please refer to Para 105 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein certain criteria have been prescribed for notification of HFCs as ‘Financial Institution’ under Section 2(1)(m)(iv) of the SARFAESI Act.

2. In this connection, Government of India (GoI) has, vide its Gazette Notification No. S.O. 2405(E) dated June 17, 2021 notified the HFCs registered under Section 29A(5) of National Housing Bank Act, 1987 and having assets worth ₹100 crore & above, as ‘Financial Institution’ under Section 2(1)(m)(iv) of SARFAESI Act, 2002. In view of revision of the criteria for notification as ‘Financial Institution’ as per the abovementioned Gazette notification of GoI, the criteria prescribed under Para 105 of the aforesaid Master Direction are withdrawn with immediate effect.

3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly.

Yours faithfully,

(J.P. Sharma)
Chief General Manager

India registered its highest ever annual FDI Inflow of US $81.72 billion during the last financial year 2020-21, India has received FDI inflow worth US$ 440.01 billion which is 58 percent of the FDI reported in the last 21 years

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Make in India is an initiative which was launched on 25thSeptember, 2014 to facilitate investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation. Development of a robust manufacturing sector continues to be a key priority of the Indian Government. It was one of the first ‘Vocal for Local’ initiatives that exposed India’s manufacturing domain to the world. The sector has the potential to not only take economic growth to a higher trajectory but also to provide employment to a large pool of our young labour force.

Make in India initiative has made significant achievements and presently focuses on 27 sectors under Make in India 2.0. Department for Promotion of Industry and Internal Trade is coordinating action plans for manufacturing sector, while Department of Commerce is coordinating service sector.

Activities under Make in India initiative are being undertaken by several Central and State Government departments from time to time. Programme specific data of such activities and details of foreign companies are not centrally maintained.

India has registered its highest ever annual FDI Inflow of US $81.72 billion (provisional figure) during the last financial year 2020-21 as compared to US $ 45.15 billion in 2014-2015. In the last seven financial years (2014-20), India has received FDI inflow worth US$ 440.01 billion which is 58 percent of the FDI reported in the last 21 years (US$ 763.58 billion). Year wise FDI inflow since 2014 is given in below table:

Table: Year wise FDI inflow since 2014-15

Sl. No.

Year

FDI (in US$ billion)

1

2014-15

45.15

2

2015-16

55.56

3

2016-17

60.22

4

2017-18

60.97

5

2018-19

62.00

6

2019-20 (P)

74.39

7

2020-21 (P)

81.72

(P): Data is Provisional. Subject to reconciliation with RBI

This information was given by the Minister of State in the Ministry of Commerce and Industry, ShriSomParkash, in a written reply in the Lok Sabha today.

Ministryof Commerce and Industry Press Release dated 04 Aug 2021

Finance Minister Smt. Nirmala Sitharaman addresses US India Business Council (USIBC) Roundtable on ‘Maximizing India’s Sustainable and Inclusive Growth as a Global Destination for U.S. Investment’

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Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman today participated in the Roundtable organized by US India Business Council (USBIC) on “Maximizing India’s Sustainable and Inclusive Growth as Global Destination for U.S. Investment’ through video conferencing which witnessed participation of prominent foreign investors like General Electric, Baxter Healthcare USA, Brambles, Marsh & McLennan Companies, PepsiCo amongst others.

The Roundtable provided the investors with an opportunity to engage with Finance Minister and other senior officials of Government of India. The areas of discussion included Life Sciences, Green Energy, Infrastructure, Insurance, Defence, Security, Manufacturing, Renewable Energy, Power, Pharmaceuticals, Textiles and Hospitality and Digital economy.

Smt. Sitharaman acknowledged the efforts of CEOs of top-40 American companies for creating a global task force to mobilize resources for India during the 2nd COVID wave. She also mentioned that India and the U.S. have also set an ambitious target of achieving $500 billion in two-way trade. 

Smt. Sitharaman spoke about stimulus packages announced recently which is tailored to meet the basic requirement of investors.  She also informed the investors about India’s consistent and continuous wide-ranging reforms which makes the country an attractive destination for foreign investment and how India continues to rise as a global economic powerhouse.  She mentioned about this year’s budget initiative pertaining to International Financial Services Centre (IFSC) at GIFT City, where the Government is committed towards developing it into a globally competitive hub for innovation and financial activities to serve the Indian economy and the region as a whole.

The broad messages conveyed to the investors were:

  • Strong, calibrated relief and reforms during COVID leading to sharp decline in new COVID infection with ramping up of the vaccination programme.
  • Continued macro-economic stability and resilience in economic recovery in the recent months.
  • Strengths/advantages of India as an investment destination
  • Vision to make India ‘Atma Nirbhar’
  • Steps taken towards Infrastructure led economic growth
  • Creating multi-sectoral opportunities for investors.
  • Strong track record of the Nation towards reform implementation in the last 6 years

In her concluding remarks, Smt. Nirmala Sitharaman spoke about going ahead with an overall vision to build a self-reliant modern India.  The Finance Minister stated that the Nation is committed for long term relationship with US Investors.  She spoke about:

  • Consistent and continuous productive reforms that make India investor friendly destination
  • Vibrant and pulsating Financial Markets
  • Enormous investments underway in Infrastructure sector
  • Covid and its aftermath demonstrating Indian economy’s resilience
  • Tremendous potential of Innovation and R&D

Economic Affairs Secretary, Shri Ajay Seth highlighted India’s progress in areas of policy and taxation. He emphasized upon the e-way bill system which promotes faster and more seamless movement of goods both intra and inter-State.  He also spoke about this year’s responsive and responsible budget focusing towards resolving investment and tax assessment issues, asset monetization and privatization of most of the sectors.

About USIBC

The U.S.-India Business Council was formed in 1975 as a business advocacy organization to enlighten and encourage the private sectors of both India and United States to enhance investment flows.The Council helps in making business between the United States and India easier, more efficient, and more profitable. It connects the two largest democracies in the world and inspires sustainable solutions to business challenges – both local and global.

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Ministry of Finance Press release dated 16 July 2021