Source: Hindu
A very good analysis and reality of FDI inflow in India.
Following are some of the important features of FDI inflow in 2020-21:
1.Gross inflow of $81.7 billion which consists of equity inflow of $60 billion and reinvested earnings of $21.7 billion.
2.Out of the $81.7 billion foreign inflow, $27 billion earnings sent/repatriated abroad.
3.A characteristic feature of foreign capital inflow in 2020-21 is:
•Sizable repatriation of long term FDI capital
•Large inflow of speculative capital i.e. FPI/FII
4.Three Reliance group companies like Jio Platform, Reliance Retail Venture and Reliance BP Mobility getting more than 50% of the FDI.
5.Majority of the FDI is through indirect acquisition of shares held by Reliance Industries without creating any productive asset.
6.Majority of FDI (more than 80%) is in services sector and very less in non-acquisition (mere transfer of shares) manufacturing sector.
7.Highest FDI is coming from Singapore and the maximum FDI is received by the Gujarat state.
