The growing confidence of foreign companies in the government’s Make in India initiative is also evident from the figures. According to official figures, FDI in the country reached a record level of $ 49.97 billion (about Rs 3.75 lakh crore), an increase of 13 percent in the last financial year (2019-20). FDI came to USD 44.36 billion in FY 2018-19. Total FDI in 2019-20, including re-invested earnings and other capital, increased to $ 73.45 billion from $ 62 billion a year earlier. This increase has been 18 percent.
According to official figures, this is the fastest increase in FDI since 2015-16. In 2015-16, there was a 35 percent jump in FDI. This is the highest foreign investment in the country since the first data in this regard was released in 2000-01. After the data was released, Commerce and Industry Minister Piyush Goyal tweeted, “Providing another proof of trust in Make in India, FDI in the country has increased by 18 percent to $ 73 billion in 2019-20. Total FDI has doubled compared to 2013-14. At that time it was only 36 billion dollars. This investment will create employment.
The service sector attracted the highest foreign investment of $ 7.85 billion in FY 2019-20. The computer software and hardware sector received $ 7.67 billion, $ 4.44 billion in telecommunications, $ 4.57 billion in trading, $ 2.82 billion in automobiles, $ 2 billion in construction, and $ 1 billion in foreign investment in the chemicals sector. Singapore leads the second consecutive year in terms of investment in India.
FDI worth $ 14.67 billion came to India from Singapore in the last financial year. However, this is lower than the $ 16.22 billion investment from Singapore in FY 2018-19. After Singapore, Mauritius was second with $ 8.24 billion, Netherlands third with $ 6.5 billion, and the US with $ 4.22 billion. The growth of FDI is very important given the way India is aiming to accelerate its infrastructure sector.