Foreign direct investment rises 140% in Q2, Mauritius top source

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NEW DELHI: Foreign direct investment (FDI) into India in the July-September quarter rose a massive 140% on year at $23.4 billion from $9.7 billion a year ago. Total FDI inflows including equity inflows, re-invested earnings and other capital was $28.1 billion in the second quarter compared to $14.06 billion in the September quarter of FY20.

FDI into India in the first quarter of 2020-21 had plunged by 60% from the year-ago period to $6.5 billion.

Mauritius was the top source of FDI in the quarter ended September 30 and the US jumped to the third position from fifth in the trailing quarter. Almost $17.5 billion of FDI came in August alone, the highest monthly inflows seen this fiscal, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) released on Friday showed.

The commerce and industry ministry last month said that India, in April-August 2020, received the highest ever total FDI for the first five months of a financial year stating that these trends are an endorsement of India’s status as a preferred investment destination amongst global investors. The total FDI inflow into India in the first five months was $35.73 billion, 13% higher than that in the same period last fiscal.

Total FDI in the first six months of FY21 was $30 billion as against $26.09 billion in the year ago period.

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