Foreign direct investment (FDI) in India grew by 13 per cent to a record of $49.97 billion in the 2019-20 financial year, according to official data. The country had received FDI of $44.36 billion during April-March 2018-19. Sectors which attracted maximum foreign inflows during 2019-20 include services ($7.85 billion), computer software and hardware ($7.67 billion), telecommunications ($4.44 billion), trading ($4.57 billion), automobile ($2.82 billion), construction ($2 billion), and chemicals ($one billion), the the Department for Promotion of Industry and Internal Trade (DPIIT) data showed.
 
 
What
  1. Singapore emerged as the largest source of FDI in India during the last fiscal with $14.67 billion investments.
  2. It was followed by Mauritius ($8.24 billion), the Netherlands ($6.5 billion), the US ($4.22 billion), Caymen Islands ($3.7 billion), Japan ($3.22 billion), and France ($1.89 billion).
  3. FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth.
Flashback
  1. Foreign direct investments (FDI) are investments made by one company into another located in another country.
  2. FDIs are actively utilized in open markets rather than closed markets for investors.
  3. Horizontal, vertical, and conglomerate are types of FDI’s
  4. Horizontal is establishing the same type of business in another country, while vertical is related but different, and conglomerate is an unrelated business venture.