The above is news from Indian Express. Some important points: | ECONOMY by VIVEK SINGH

The above is news from Indian Express. Some important points:

1) Indian received the maximum net FDI Inflow in 2020-21 worth $43.3 billion. The total FDI inflow was around $54.6 billion and FDI outflow was around $11.3 billion.
The FDI outflow consists of the profits which the FDI investors take back from India OR it can also include the sale of investments/business from India.

FDI means what foreign companies are investing in India (through shares). It happens mainly through three routes. First is acquisition/purchase of shares of Indian companies, second is through joint venture route (a foreign firm establishing a JV company in India with an Indian partner) and third is through subsidiary route when a foreign firm creates a (100%) subsidiary company in India.
In the news above, foreign firms like Facebook and Google acquired stakes/shares in RIL which consists of around 64% of the FDI last year. So, basically this consists of the first route of FDI discussed above.

When an Indian companies invest abroad then there is another term for it and this is called "Overseas Direct Investment" (ODI). It is basically the opposite of FDI in India. The ODI is quite less as compared to FDI.

2) This FDI inflows in India have been driven by growth in sectors of the Indian economy like digital economy, privatization/disinvestment plan of Govt. of India and the huge liquidity pumped by the foreign Central bankers in other countries due to covid. And this extra liquidity is chasing the attractive investments all over the world like India.

3) Due to strong FDI and FPI inflow, our foreign exchange reserves has also increased to $576 billion by end of March 2021. Actually when foreign investors bring dollars this is ultimately/indirectly taken by RBI and RBI provides them rupee. So, RBI forex reserves increases and it also increases rupee liquidity in the economy.

4) Maharashtra received the maximum FDI of around 47%, followed by Gujarat 24% and then Karnataka and Delhi.