New Delhi: According to the latest data from DPIIT, foreign direct investment (FDI) in the computer software and hardware sector increased almost four times to $ 24.4 billion during April-December 2020-21.
While the sector received $ 6.4 billion FDI during the year, the total investment from 2019-20 amounted to $ 7.7 billion, data for the Promotion of Industry and Internal Trade (DPIIT) showed.
According to experts, the accelerated digitization and the increased use of artificial intelligence due to the pandemic-led work-from-home scenario all led to a great opportunity for the computer software and hardware sector.
“There is extensive unlocking of value, and we have seen great FDI in this sector,” said Arvind Sharma, partner, Shardul Amarchand Mangaldas & Co. Bimal Raj, partner, Singhi Advisors, also said that the sector has seen an increase in FDI as the worldwide was an increase in electronics and digital transformation and that the Indian technology enterprises were ideal to exploit the potential.
The other sectors that recorded significant growth in foreign inflows during the nine-month period 2020-21 include construction (infrastructure) ($ 7.2 billion) and pharmaceuticals ($ 1.24 billion).
FDI in telecommunications fell from $ 4.3 billion during April-December 2019-20 to $ 357 million. Also, cars saw a $ 1.18 billion slowdown in April-December 2020-21 from $ 2.5 billion in the same period last fiscal year.
Sharma says that key sectors that can attract more FDI include IT, telecommunications, pharmaceuticals and electronics manufacturing. ‘With the increasing use of high technology during the COVID-19 pandemic, has shifted the focus from global investors to the IT and telecom sector. “In addition, the government’s continued emphasis on Make in India and the introduction of performance-based incentive schemes for various sectors will also lead to accelerated growth and more inflows of foreign direct foreign exchange,” he said.
Furthe, during April-December 2020-21, India attracted maximum FDI from Singapore ($ 15.71 billion) followed by US ($ 12.82 billion), UAE ($ 3.91 billion), Mauritius ($ 3 , 47 billion) and Cayman Islands ($ 2.53 billion). The total inflow of FDI shares into the country rose 40 percent to $ 51.47 billion.
Source: Telangana Today