The US has emerged as the second biggest source of foreign direct investment (FDI) into India, replacing Mauritius, during the first half of the current financial year, according to data of the commerce and industry ministry.
During April-September 2020, India attracted FDI worth $7.12 billion from the US and $2 billion from Mauritius, which slipped to fourth position, the DPIIT (Department for Promotion of Industry and Internal Trade) data showed.
Mauritius was the second biggest FDI source during the same period previous year. The US was the fourth biggest investor during that period.
Singapore with $8.30 billion foreign inflows continued to be the top source of FDI for India in April-September 2020-21. The country has received $2.1 billion inflows from Cayman Isands.
The islands was followed by Netherlands ($1.5 billion), UK ($1.35 billion), France ($1.13 billion), Japan ($653 million) , Germany ($202 million), and Cyprus ($48 million).
According to experts, increasing FDI from the US reflects the further strengthening of economic ties between the two countries.
The US was also India's top trading partner in 2019-20.
Biswajit Dhar, a professor of economics at Jawaharlal Nehru University, said that "the US technology companies are buying stakes in Indian companies that is why FDI numbers are showing increase".
Despite the fact that FDI from Mauritius is coming down, it still accounts for 29 per cent of the total inflows received by India during April 2000 and September 2020. In this period, India has attracted $500.12 billion foreign direct investment.
Foreign inflows into India grew by 15 per cent to $30 billion during the first half of the current fiscal. In August, the country had attracted $17.5 billion worth of foreign investments.