India gets FDI inflow of US$ 343.64 mn for R&D in 2021

With this amount, India has achieved a six-fold jump in Foreign Direct Investment (FDI) in the Research and Development (R&D) space, compared to the previous year

July 20, 2022

Karnataka received the most FDI equity for R&D during 2021, as inflows increased by 250% compared to 2020

Singapore was the largest investor in the R&D space with a 40% share in 2021, followed by Germany at 35%, and the US at a share of 11%

Several countries including Germany, Mauritius, France, Singapore, Oman and US, showed an increase of more than 200% in making investments in 2021

FDI has been permitted to utilize a 100% automatic route in the R&D sector

India achieved a six-fold jump in FDI in the R&D space with an equity inflow of US$ 343.64 million in 2021, according to data released by the Department of Industry and Commerce. 

As per the data, Karnataka received the most FDI equity for R&D during 2021, with inflows having increased by 250% from 2020. It was followed by Telangana and Haryana. 

Singapore was the largest investor in the R&D space at 40% share in 2021, followed by Germany at 35%, and the US at a share of 11%. 
Several countries including Germany, Mauritius, France, Singapore, Oman and US, showed an increase of more than 200% in making investments in 2021 compared to the previous year.

FDI inflows in the R&D space play an important role in the development of a knowledge-based economy and facilitate paths for higher economic growth. FDI has been permitted to utilize a 100% automatic route in the R&D sector while being subjected to the applicable laws, regulations, and security.