India's FDI to GDP ratio in 2021—2022 was 2.7 %

4 Aug 2022 , 01:00 PM

According to official data released on Wednesday, India’s foreign direct investment to gross domestic product (FDI to GDP) ratio for the fiscal year 2021—22 was 2.7%.

The indicator that compares a nation’s capital inflows to its gross domestic product is called the FDI to GDP ratio. Som Parkash, the Union Minister of Commerce and Industry, presented the information in the Lok Sabha. The ratio of FDI to GDP in 2021—20 was 3.1%. It was 2.3% in the 2017—18 school year.

The minister responded to a query regarding whether it was true that the central government had not met its goal for FDI inflows by stating that the government does not set goals for FDI inflows since it is mostly a matter of commercial business decisions.

The government has implemented an investor-friendly policy to encourage foreign direct investment (FDI), making the majority of sectors–aside from a few strategically crucial ones–open to 100% FDI through the automatic route. To guarantee that India continues to be a desirable and welcoming location for investors, the FDI policy is also being revised.