Mumbai | September 9, 2020 3:37:05 am
Foreign direct investment into India rose 10 per cent to $42.69 billion in the year ended March 31, 2020 from $38.74 billion in the previous year despite the global slowdown, with the Cayman Islands showing the biggest jump in bringing cash in to India.
According to the Reserve Bank of India data, FDI from Cayman Islands jumped 305 per cent to $3.49 billion during 2019-20, as against $863 million in the previous year, thus becoming the fourth largest FDI contributor behind Singapore, Mauritius and the Netherlands. The main activity in the British Overseas Territory is financial services. FDI from Cayman Islands, one o the most popular tax havens, in 2017-18 was $ 1.14 billion and $ 49 million in 2016-17.
Singapore and Mauritius remained the major source countries, accounting for about 50 per cent of total FDI flows in 2019-20, followed by the Netherlands, the Cayman Islands, the US and Japan, according to the RBI data. While FDI from the US was $ 3.40 billion, Singapore topped the list with FDI of $ 12.61 billion.
“Despite a slowdown in the global economy and growing global investment concerns due to disruptions in supply chains, India was able to sustain the pace of FDI in 2019-20 and was the 9th largest recipient country globally in 2019,” the RBI said. Most of FDI equity flows went to the services sector, including communication services, retail and wholesale trade, financial services, computer and business services and the manufacturing sector. The manufacturing sector got $ 8.15 billion, communication services $ 6.83 billion and retail trade $ 4.91 billion.
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