As per the latest data provided by the Ministry of Commerce and Industry, India saw its highest-ever inflow of foreign direct investment (FDI) of $81.72 billion during the financial year 2020-21 which is a 10 per cent rise on a year-on-year basis.
Context
As per the latest data provided by the Ministry of Commerce and Industry, India saw its highest-ever inflow of foreign direct investment (FDI) of $81.72 billion during the financial year 2020-21 which is a 10 per cent rise on a year-on-year basis.
Background
Analysis
What is FDI?
Routes through which India gets FDI
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Impact of FDI inflows
FIIs
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Is the recent surge good for the Indian Economy?
Conclusion
Although the government has cited the reason for this huge inflow as key policy reforms as well as investment facilitation but the inflows have not been in sync with the government’s priorities for the post-COVID-19 economic recovery: the Aatma Nirbhar Bharat Abhiyaan, focusing on the revival of the manufacturing sector through the Performance Linked Incentive (PLI) scheme and huge investment in the infrastructure sector.
And when this is the situation, then the celebration for the historical surge of FDI inflows in an FYis clearly questionable.
Verifying, please be patient.