After two years of double-digit rise, foreign direct investment grew 2% during the last financial year to a new high of $83.6 billion.
The latest numbers showed that Singapore had overtaken Mauritius to emerge as the top source of FDI into the county, with the US at the second spot and Mauritius, which topped the rankings last year, slipping to the third place, an official statement said. With around 27% of FDI into India, inflows from Singapore are estimated at about $22. 5 billion, compared to the US’s $15 billion and around $13 billion from Mauritius, an all-time favourite for global investors given the tax benefit that it enjoyed for years.
Among the sectors, manufacturing saw a 76% jump with inflows during 2021-22 estimated at $21. 3 billion, ‘Computer software and hardware’ was the most attractive sector cornering around a quarter of the pie, followed by services and automobiles (12% each).
The Modi government sought to claim credit for the rise. “The steps taken during the last eight years have borne fruit as is evident from the ever-increasing volumes of FDI inflow being received into the country, setting new records,” the commerce and industry ministry said.