India has received $35.73 billion Foreign Direct Investment (FDI) in April-August 2020—the highest ever total FDI for the first five months of a financial year.
This is 13% higher than that in the same period last fiscal.
Quoting the Indian Commerce and Industry Ministry, The Economic Times reported that the trend is an endorsement of India's status as a "preferred investment destination" amongst global investors.
"FDI equity inflow received during FY21 (April to August, 2020) is $27.1 billion. It is also the highest ever for first five months of a financial year," the ministry said.
This is 16% higher than the inflows witnessed in the first five months of 2019-20 which were $23.35 billion.
Stating that these trends are an endorsement of India's status as a preferred investment destination amongst global investors, the government said: "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".
Total FDI into India in the first quarter of 2020-21 plunged by 60% from the year-ago period to $6.5 billion, data released by the department for promotion of industry and internal trade (DPIIT) showed last month. India's performance was worse than the global projections by the United Nations Conference on Trade and Development (UNCTAD).
The agency in March had revised its projections about the impact of outbreak and spread of Covid-19 on global FDI. The multilateral agency expects the downward pressure on global FDI to be -30% to -40% in FY21, much higher than its earlier projection of -5% to -15% pressure.
As per the statement, the government's intent is to make the FDI policy more investor friendly and remove the policy bottlenecks that have been hindering the investment inflows into the country.
"The steps taken in this direction during the last six years have borne fruit as is evident from the ever increasing volumes of FDI inflows being received into the country," it said.
Total FDI inflow grew 55% from $231.37 billion in 2008-14 to $358.29 billion in 2014-20 while FDI equity inflows rose 57% from $160.46 billion to $252.42 billion in the same period.