NEW DELHI: India received a record $81.7 in foreign direct investments (FDI) in fiscal 2020-21, the only bright spot in a year when the economy is likely to have contracted 8%, the worst in 40 years.
The 10% year-on-year jump in FDI at a time when global inflows contracted is surely a stupendous achievement.
“Measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors,” the commerce and industry ministry has said in a statement.
But a deeper analysis shows that at least 34% of the total FDI inflows in FY21 can be attributed to money put by global investors in Mukesh Ambani-led Reliance Industries Ltd. The oil-to-telecom conglomerate sold equity shares in seven group companies worth…