India’s Foreign Direct Investment (FDI) inflows in the first quarter of Financial Year 2021-22 (FY22) stood at $22.53 billion, up by 17.57 billion or 168% from $11.84 billion in the same period in the previous fiscal. This increase in foreign inflows during the first three months of the previous FY21 was recorded at 6.56 billion, according to a statement from the Ministry of Commerce & Industry.

“FDI equity inflow grows by 168% in the first three months of FY 2021-22 (US$ 17.57 billion) compared to the same corresponding period last year (US$ 6.56 billion),” said the ministry statement.

The total FDI inflow was 90% higher in the first three months of 2021-22, i.e. April 2021 to June 2021  as compared to the first three months of 2020-21, it further added.   

The automobile sector emerged as the top to attract 27% of all foreign inflows during the period in FY22. It was followed by computer software and hardware sector at 17% and Services Sector at 11% respectively of all FDI inflows during the period.

Among states, Karnataka was the top destination for foreign investors who poured 48% of all such investments there followed by Maharashtra at 23% and Delhi at 11%.

The ministry said the spike in FDI inflows in the first quarter of FY22 was the result of measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business.

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