FDI in India Fiscal Year 2020-21 and its Trend in NCR Realty

In spite of worsening economic conditions due to a pandemic, India noted an encouraging investment growth validating India’s prestige as an ideal investment destination among worldwide investors

File photo
File photo

India witnessed its all-time high inflow of foreign direct investment (FDI) of$81.72 billion during the fiscal year 2020-21 as compared to $74.39 billion in 2019-20. It is an outcome of numerous actions taken by the government on policy restructurings, investment simplification and ease of doing business and liberalized policies.

Singapore again being the major depositor contributing for 29 per cent FDI, trailed by the United States at 23 per cent; Mauritius has been replaced by the US as the second-largest source of FDI into India in 2020-21. According to Business Today, this trend is likely to prevail with the increased cash being introduced in the US economy and also the same anti-China opinions shared by both countries shall offer the current trend momentum.

Gujarat raked the maximum investments of 37% in 20-21 and continue to be at the top spot for the fourth consecutive year in a row, Delhi bagged an investment of 59,830 crore during the April-December period and stands on fourth spot and Haryana collected 13,661 crore during the same period and is trailing on the seventh spot.

Construction activity (infrastructure), has recorded more than 100 per cent growth in equity during FY21 as compared to the previous year.  Delhi and Haryana collectively bagged an FDI of 13% which shall play a prominent role in economic development and creating more job opportunities. Infra witnessing a growth of 100% contribution as compared to last year is a remarkable signal, same shall work as a catalyst in infrastructure development and also government may allocate some funds installed or near to completion real estate projects.

Due to the ongoing Covid-19 Pandemic, work from home has become a reality and this situation has already impacted everyone in the service sector including IT/ITES, Banking, Stocks & Investments, Consulting Services and more. People have realized the value of ownership of a home and many are eyeing a home with bigger space and lifestyle amenities. Keeping an eye on all these factors we can expect a rise in demand in the residential sector.

These FDI Investments are targeted at the key manufacturing sectors and infrastructure projects across the Gurgaon region. New Industrial Model Townships are rapidly emerging on either side of the Delhi Mumbai Industrial Corridor, which has thrown open numerous possibilities for residential, commercial, retail real estate in this region. Economic activity was inexplicably high in new regions of Gurgaon but Covid-19 did slow down this rapid growth.  According to recent global trends, the Covid-19 lockdown is likely to result in pent-up demand for real estate as the market opens up to daily chores again

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