Page 479 - ES 2020-21_Volume-1-2 [28-01-21]

106 Economic Survey 2020-21 Volume 2

US$ 17.6 billion in April-September, 2020 vis-à-vis US$ 4.0 billion in April-September, 2019.
Singapore continues to be the top investing country, in terms of FDI equity inflows, while US
has taken second position, as against being at 4 spot during corresponding period a year ago.
th
Figure 14: Foreign Direct Investment (FDI)
30 Net FDI Net FDI to GDP (RHS) 4.5
24.6 4.0
25
3.5
20 14.0 3.0
US$ Billion 15 9.6 7.4 7.3 6.4 7.4 10.0 12.0 2.5 Ratio to GDP, Per cent
2.0
10
1.5
5 1.0
0.5
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0.0
-5 -0.8 -0.5
2018-19 2019-20 2020-21

Source: RBI
Note: The net FDI inflows in Oct 2020 were to the tune of US$ 4.6 billion.
3.22 After unprecedented sell-offs in March 2020 reflecting recessionary fears among global
investors at the onset of the pandemic, foreign portfolio investment (FPI) witnessed strong
rebound especially in equity inflows, recording net FPI flows of US$ 28.5 billion during April-
December, 2020 as against US$ 12.3 billion in corresponding period of last year (Figure 15).
Indian equities have been supported by abundant global liquidity, better corporate earnings
in subsequent quarters and better management of COVID-19 re-igniting economic recovery
prospects. The addition of Indian stocks to Morgan Stanley Capital International (MSCI) Global
Standard indices has also helped in attracting foreign capital inflows.

Figure 15: Foreign Portfolio Investment (FPI)

25
Debt Equity Total net FPI
20

15
10
5
US$ Billion -5
0

-10

-15
-20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018-19 2019-20 2020-21
Source: National Securities Depository Limited (NSDL).
Note: Total net FPI is summation of debt, equity, hybrid and VRR, however, only debt and equity are
depicted in above chart as they together account for more than 90 per cents of the total net FPI.