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Opinion

The second largest source of US FDI to India during April-September 2020

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The United States has become the second largest source of foreign direct investment (FDI) in India, replacing Mauritius, during the first half of the current financial year, according to data from the Ministry of Commerce and Industry.

During April-September 2020, India attracted FDI worth US $ 7.12 billion and US $ 2 billion from Mauritius, which fell to fourth place, data from the DPIIT (Department of Promotion of Industry) showed. and Domestic Trade).

Mauritius was the second largest source of FDI during the same period last year. The United States was the fourth largest investor during that period.

Singapore, with USD 830 billion of foreign inflows, remained the main source of FDI for India in April-September 2020-21. The country has received revenues of $ 2.1 billion from Cayman Isands. The islands were followed by the Netherlands (USD 1.5 billion), the United Kingdom (USD 1.35 billion), France (USD 1.130 million), Japan (USD 653 million), Germany (USD 202 million) and Cyprus (USD 48 million).

According to experts, the increase in FDI from the US reflects a further strengthening of economic ties between the two countries.

The United States was also India’s top trading partner in 2019-20.

Biswajit Dhar, an economics professor at Jawaharlal Nehru University, said that “American tech companies are buying stakes in Indian companies, so the FDI numbers are increasing.”

Even though Mauritian FDI is declining, it still represents 29% of the total inflows received by India during April 2000 and September 2020. In this period, India has attracted $ 500.12 billion of investment direct foreign.

Foreign inflows to India grew 15 percent to $ 30 billion during the first half of the current fiscal year. In August, the country had attracted foreign investment worth $ 17.5 billion.

Hindustan Times

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