In the calendar year 2021, India attracted USD 343.64 million in Foreign direct investment (FDI) equity inflow, a 516 percent increase over the previous C.Y. 2020. (USD 55.77 million).
In the Research and Development (R&D) industry, FDI is allowed via a 100% automatic route, subject to any applicable laws, regulations, security requirements, and other restrictions.
Following Telangana and Haryana in order of FDI Equity recipients in R&D for C.Y. 2021 is Karnataka. Telangana, Karnataka, Haryana, Andhra Pradesh, and Tamilnadu all experienced growth of more than 250 percent in C.Y. 2021 compared to C.Y. 2020.
With a 40% share of all FDI Equity in R&D, Singapore leads Germany (35%) and the United States in terms of R&D investment during C.Y. 2021. (11 percent).
Additionally, FDI equity inflow from a number of nations, including Germany, Mauritius, France, Singapore, Oman, and the United States, increased by more than 200 percent from the previous C.Y. 2020.
Daimler Truck Innovation Center was the top FDI Equity inflow recipient company in R&D during C.Y. 2021 with 35% share of total FDI Equity in R&D followed by Aragen Life Sciences Private Limited (34%) and Stelis Biopharma Private Limited (21%).
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.
R&D plays an important role in the development of a knowledge-based economy, which can pave the way for higher economic growth.
Foreign Direct Investment (FDI) infuses long-term sustainable capital into the economy and contributes to technology transfer, strategic sector development, increased innovation, competition, and job creation, among other benefits.
The government has made a concerted effort to attract and promote R&D-intensive FDI in order to supplement domestic capital, technology, and skills for accelerated economic growth and development.