FDI in research, development increases to USD 344 mn in 2021: comm min

Foreign direct investment (FDI) inflows in the research and development sector have increased to USD 343.64 million in 2021 against USD 55.77 million in 2020, the commerce and industry ministry said on Tuesday.

FDI is permitted under a 100 per cent automatic route in the research and development (R&D) sector, subject to applicable laws/regulations, security and other conditionalities.

The ministry also said that Karnataka is the top FDI equity recipient in R&D during 2021, followed by Telangana and Haryana.


Singapore is the top investing country in R&D during 2021 with a 40 per cent share of the total FDI equity in R&D, followed by Germany (35 per cent ) and the US (11 per cent ), it added.

Daimler Truck Innovation Center was the top FDI equity inflow recipient company in 2021, followed by Aragen Life Sciences Private Ltd and Stelis Biopharma Private Ltd, as per the ministry.

"These trends indicate a robust and growing R&D sector which would benefit the economy by driving innovation, increasing productivity, thereby leading to higher economic growth," it added.

Research and development (R&D) plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth.

Foreign Direct Investment infuses long-term sustainable capital in the economy and contributes towards technology transfer, development of strategic sectors, greater innovation, competition and employment creation, among other benefits, it said.