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Over the years, India has successfully positioned itself as one of the most attractive destinations for Foreign Direct Investment across the globe. India’s FDI inflows have increased 20-fold since FY03-04, when the inflows were US$ 4.3 billion only.

India was the fourth major host of greenfield FDI projects and eighth major host of cross-border M&A deals between 2004 to 2015, according to a research paper titled ‘Future of Regional Cooperation in Asia and Pacific’ released on the Asian Development Bank website on 25 November 2020.

Since January 2020, the Coronavirus (COVID-19) pandemic has taken a huge toll on the global economy. In India as well, the impact of the national lockdown imposed in March 2020, followed by cautious “un-locking” since June 2020, resulted in 6.6% in the GDP for the year 2020-21. 

In the financial year 2021-22, the economic recovery gained further momentum, with GDP growing 20.1% during April to June 2021, as compared to contraction of 24.4% in Q1 2020-21. In the second quarter of 2021-22 (July to September), India’s GDP increased by 8.4% (Rs. 35.73 trillion) over the corresponding period of 2020-21. The growth trend continued in the third quarter (5.4%) as well as in the fourth quarter. As per data released by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on 31st May 2022, India’s GDP at Constant (2011-12) Prices in Q4 of 2021-22 (January to March 2022) was estimated at Rs 40.78 trillion, showing a growth of 4.1. Overall, India’s GDP in 2021-22  grew by 8.7%  as compared to (-) 6.6% in the previous year. More details

With a resolve to convert the economic setback due to the COVID-19 pandemic into an opportunity to make India self-reliant, and a bigger, stronger and more important part of the global economy, the Prime Minister launched the Atmanirbhar Bharat Abhiyan (self reliant India programme) on 12 May 2020 with the announcement of a stimulus package worth nearly Rs.21 trillion (US$277 billion), equivalent to around 10 per cent of national GDP, designed to open up new avenues of trade and investment in the post-Coronavirus economy. This was followed with further stimuli in October and November 2020, taking the total value of stimulus package to Rs. 29.87 trillion, i.e. about 15% of national GDP. Further, the Government of India has shown an appetite for bold policy reforms relating to agriculture markets, labour laws and redefinition of MSMEs, as well as taking concrete steps for employment generation and to create new opportunities for trade and investment.

The implementation of Atmanirbhar Bharat package and calibrated unlocking of the economy have ensured that economic recovery in India has gained momentum across all sectors.  As a result, India received its highest ever total FDI inflow of US$ 83.57 billion in 2021-22, up from US$ 81.72 billion during the year 2020-21, bettering the previous high of US$ 81.72 billion in 2020-21.

At the Investor’s Roundtable organised by Department for Promotion of Industry and Internal Trade (DPIIT), along with Invest India, on 20th April 2022, it was highlighted that India received the highest ever FDI in the last two years.

As per UNCTAD Global Investment Trends Monitor, 2022, the Foreign Direct Investment (FDI) flows to India in calender year 2021 were 26% lower as compared to 2020, because large M&A deals recorded in 2020 were not repeated. (UNCTAD GITM), January 2022, 2022, the Foreign Direct Investment (FDI) flows to India in calender year 2021 were 26% lower as compared to 2020, because large M&A deals recorded in 2020 were not repeated.

However, the World Investment Report 2022, (UNCTAD, 9 June, 2022) ranks India as the world’s 7th highest recipient of FDI in 2021 calender year, up one notch as compared to the eighth rank in 2020.

invest in india

An attractive investment destination driven by economic reforms, growing capabilities, and a large consumption base

Invest in India

Find out more about the rewards of investing in India’s fast-growing economy

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India's FDI Policy

In October 2020, the Government of India reviewed and amended the FDI policy

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Self-reliant India Programme

India introduced a stimulus plan worth nearly Rs.21 trillion to drive growth

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Guide to Investing

Your step-by-step guide towards investing and engaging in India

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Factors Driving Growth

India's foreign partnerships have improved from manufacturing to R&D

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FAQS

Solutions to your immediate queries relating to investment in India

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INDIAN STATES
& UNION TERRITORIES

Unraveling the socio-economic fabric of India’s 28 states and eight union territories

INDIA’S ECONOMIC DASHBOARD

Key indicators of the Indian economy – GDP, FDI, Import, and Export Earnings

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initiatives

Find out more about the initiatives rolled out to energise India’s business landscape

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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