India’s Foreign Direct Investment (FDI) witnessed a notable spring in November 2020. The Commerce Ministry published the FDI data which apparently determines that the entire FDI in November 2020 rose by a whopping 81 % to $ 10.15 billion against $ 5.6 billion in November 2019. 

Foreign direct investment is vital for emerging economies and developing markets where companies require funding and expertise to grow their international sales. Private investment in infrastructure, energy, and water is a demanding driver of the economy as it aids in progressing jobs and earnings. The Commerce Ministry said that FDI is an influential driver of economic growth and an essential source of non-debt finance for the economic development of India. The government has endeavoured to put in place and enable an investor-friendly FDI policy.

India's foreign direct investment inflows grew by 81 percent in November 2020 to $10 billion

The purpose and intentions are to make the FDI policies more investor-friendly and eliminate the policy blockage that has been preventing the investment inflows into the country. The measures practised in this direction have yielded fruit. It is manifest from the ever-increasing volumes of FDI inflows being received into the country, it said.

Measures taken by the Government on the FDI policy reforms, investment facilitation and efficiency of doing business have risen in elevated FDI inflows into the country. The subsequent trends in India’s Foreign Direct Investment are a signature of its standing as an approved investment target amongst worldwide investors.

FDI equity has also fallen to $ 8.5 billion as against $ 2.8 billion in November 2019, recording a growth of 70 %. India has captivated a total FDI inflow of $ 58.37 billion from April to November 2020. It is the most distinguished ever for the first eight months of a financial year (F.Y.) and 22 % higher as contrasted to the first eight months of 2019-20 ($ 47.67 billion).

FDI equity inflow obtained while F.Y. 2020-21 (April to November 2020) is $ 43.85 billion. It is also the most powerful ever for the initial eight months of a financial year and 37% more resembled the first eight months of 2019-20 ($ 32.11 billion deal), the data unveiled.