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FDI equity inflows distribution in India by sector 2019

Distribution of foreign direct investment equity inflows in India for FY 2019, by sector (in billion Indian rupees)

by Sanika Diwanji, last edited Oct 9, 2019
FDI equity inflows distribution in India by sector 2019 The services sector in India received the highest share in FDIs amounting to over 639 billion Indian rupees in fiscal year 2019. This sector included finance, banking, insurance and other non-financial sectors like research and development, testing, analysis and outsourcing. The telecommunications sector came second in terms of FDI equity inflow, amounting to almost three billion dollars that year. Overall, the country saw the highest highest-ever FDI inflow of over 44 million U.S. dollars between 2018 and 2019.
Services sector in limelight

All in all, the business services sector in the country seemed to be faring very well in terms of attention from foreign investors. One possible reason for this could be because almost 56 percent of the registered foreign companies in India were under this sector. Out of this, most companies were registered in the state of Maharashtra, followed by the capital city of Delhi indicating a good business trajectory.

FDIs to aid an ailing economy

Foreign investments play a critical role in developing countries since they help bring in resources, latest technologies and best practices that help push economic growth on to a higher curve. In August 2019, India opened its doors further to FDIs by loosening its grip on the sourcing requirements for various sectors. The government also allowed 100 percent FDI in sectors like commercial coal mining and contract manufacturing, hoping to diversify its supply chains. These were just some of the measures being taken by the government in order to give a stimulus to the ailing economy.
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Distribution of foreign direct investment equity inflows in India for FY 2019, by sector (in billion Indian rupees)

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