India attracts $67.54 bn FDI inflow between April-Dec 2020-21, economic growth gets boost

India attracted a total Foreign Direct Investment (FDI) inflow of $67.54 billion from April to December 2020. A major driver of economic growth, the FDI inflow recorded between April-December 2020 is the highest ever for the first nine months in a financial year and 22% higher as compared to the first nine months of 2019-20. The increase in FDI has been attributed to the measures taken by the government on all fronts of policy reforms, investment facilitation and ease of doing business. 

FDI inflow grew by 40%

Moreover, the FDI equity inflow grew by 40% in the first 9 months of F.Y. 2020-21 ($ 51.47 billion) compared to the year-ago period ($ 36.77 billion). In the 3rd Quarter of 2020-21, the FDI inflow has witnessed a 37% rise as compared to do the 3rd quarter of 2019-20 when it was $19.09 billion. Data also shows that the FDI inflow in the month of December 2020 notched up a positive growth of 24% at $9.22 billion compared to the $7.46 billion witnessed in December 2019. 

"The steps taken in this direction during the last six and a half years have borne fruit, as is evident from the ever-increasing volumes of FDI inflows being received into the country. Continuing on the path of FDI liberalisation and simplification, government has carried out FDI reforms across various sectors,” the Commerce and Industry Ministry said.

India exits technical recession

India's Gross Domestic Product (GDP) expanded by 0.4 per cent in the third quarter (October-December) of 2020-21 amid the COVID-19 crisis. The data released by the National Statistical Office last week effectively implied that the country's economy is back on track in the wake of low novel coronavirus cases and increased economic activity. This makes India one of the only major economies in the world to post growth in the last quarter of 2020. This development has also assumed significance as India has come out of a technical recession.

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