India received highest ever FDI inflow of Rs 6,31,050 crore in FY 2021-22

New Delhi [India], July 29 (ANI): According to Minister of State in the Ministry of Commerce and Industry, Som Parkash, India received a record-breaking amount of Foreign Direct Investment (FDI) inflow of Rs 6,31,050 crore in Financial Year 2021-22.
The manufacturing sector saw a significant increase in FDI equity inflow, rising from Rs 89,766 crore in the previous year to Rs 1,58,332 crore in the financial year 2021-22, marking a 76% increase.
FDI refers to an investment made by a foreign investor in a business entity in another country.
The government’s efforts to reform FDI policies have led to this increase in inflows, as stated in the official statement. The adoption of a transparent and liberal policy has made India an attractive destination for FDI, with 100% FDI allowed in strategically important sectors through the automatic route.
FDI in the manufacturing sector is also allowed through the automatic route, whether through self-manufacturing or contract manufacturing in India, as long as it follows the provisions of the FDI Policy.
Manufacturers are also free to sell their products through wholesale, retail, or e-commerce without obtaining government approval.
The Reserve Bank of India (RBI) has also taken measures to boost foreign exchange inflows, such as exempting incremental Foreign Currency Non-Resident (Bank) and Non-Resident (External) Rupee deposits from Cash Reserve Ratio and Statutory Liquidity Ratio, and allowing Foreign Portfolio Investment in commercial paper and non-convertible debentures with a maturity of up to one year, among others. (ANI)