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FDI equity inflows distribution India FY 2020 by sector

The services sector in India received the highest share in FDIs amounting to over 554 billion Indian rupees in fiscal year 2020. This sector included finance, banking, insurance and other non-financial sectors like research and development, testing, analysis and outsourcing. The computer hardware and software sector came second amounting to almost 324 billion Indian rupees that year.

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.

Distribution of foreign direct investment equity inflows in India for financial year 2020, by sector

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Source

Release date

May 2020

Region

India

Survey time period

FY 2020

Supplementary notes

* Services sector includes financial, banking, insurance, non-financial / business, outsourcing, R&D, courier, tech. testing and analysis
India's financial year starts in April and ends in March. For example, FY 2018 refers to data from April 2017 until March 2018.
Figures are provisional.

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Statistics on "Foreign direct investments into India"

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