FDI inflows from Caymans triple

FDI inflows from Singapore fell to $14.7 bn in FY20 from $16.2 bn in the previous year, but held on to its No.1 ranking

Foreign direct investment (FDI) into India picked up in the year ended 31March, growing at 13%, after contracting for a year, with the Cayman Islands emerging as a major source.

India’s FDI equity inflows jumped to $50 billion in FY20 from $44.4 billion in the previous year, showed data released by the Department for Promotion of Industry and Internal Trade (DPIIT). FDI, including reinvested earnings, grew 18% to $73.4 billion from a year ago.

“In another strong vote of confidence in ‘Make In India’, total FDI into India grew 18% in 2019-20 to reach $73 billion. Total FDI has doubled from 2013-14 when it was only $36 billion. This long-term investments will spur job creation," commerce minister Piyush Goyal tweeted.

FDI inflows from Singapore fell to $14.7 billion in FY20 from $16.2 billion in the previous year, but held on to its No.1 ranking as a source of foreign investment into India. FDI inflows from Cayman Islands tripled from $1 billion a year ago to $3.7 billion in FY20.

The British overseas territory, the Cayman Islands, the US and Switzerland are the most active in helping the world’s richest citizens hide and launder money, said a study by Tax Justice Network.

The Cayman Islands, which is close to Cuba and was ranked in the study as the most prominent centre for financial secrecy, hosts over 100,000 companies, a number that outstrips the local population, said a Reuters report.

The services sector ($7.8 billion) continued to attract the highest FDI inflows into India in FY20 with computer hardware and software sector ($7.7 billion) coming a close second, FDI into the services sector saw a dip in FY20 compared to $9.2 billion a year ago.

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