India receives a record high FDI inflow of Rs 6,31,050 crore in FY22

India received its highest ever Foreign Direct Investment (FDI) inflow of Rs 6,31,050 crore in the previous fiscal, i.e, FY 2021-22, Som Parkash, Minister of State in the Ministry of Commerce and Industry said on Friday.

The amount of FDI equity entering the manufacturing sectors surged by 76% in the fiscal year 2021–2022 to Rs 1,58,332 crore from Rs 89,766 crore in the prior year.

As per the official announcement, the increase in FDI inflows is a result of the government's adjustments to its FDI policy.


To entice foreign direct investment, a liberal and open policy was implemented.

Foreign investment in the manufacturing sector is under the automatic route. Manufacturing activities may be self-manufacturing by the investee or contract manufacturing in India with a legal basis. This is subject to the provisions of the FDI Policy.

A manufacturer can also sell its products through wholesale or retail, including through e-commerce, without obtaining government approval.

Measures undertaken by the Reserve Bank of India (RBI) to enhance foreign exchange inflows include exemption of incremental Foreign Currency Non-Resident (Bank) and Non-Resident (External) Rupee deposits from Cash Reserve Ratio and Statutory Liquidity Ratio and allowing of Foreign Portfolio Investment in commercial paper and non-convertible debentures with an original maturity of up to one year, amongst others.

Inputs from ANI