<p>Foreign direct investment (FDI) in computer software and hardware jumped over threefold to $26.14 billion during 2020-21 on account of significant growth in the country's technology space, according to data from the Department for Promotion of Industry and Internal Trade.</p>.<p>The sector received $7.67 billion FDI in 2019-20 and $6.41 billion in 2018-19, the data showed.</p>.<p>The computer software and hardware sector accounted for about 43 per cent in the total $59.63 billion foreign inflows that India attracted in 2020-21.</p>.<p>The technology space in India is growing significantly on the back of the rapid end-to-end digitisation of businesses, Deloitte India Partner Rajat Wahi said.</p>.<p>"This has especially accelerated during the lockdowns over the last year that has forced businesses to automate processes across the value chain — and this is likely to further accelerate this year and in the next 2-3 years.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/economy-business/foreign-direct-investment-jumps-19-to-5964-billion-in-2020-21-989436.html" target="_blank">Foreign direct investment jumps 19% to $59.64 billion in 2020-21</a></strong></p>.<p>"This technology enablement is attracting overseas investors to India, where hardware, software and SaaS (software-as-a-service) are seeing a big push in India's FDI," he said.</p>.<p>Most technology practices are getting great traction today, especially in segments like e-commerce, and a lot of the FDI is likely to be used to support technology enablement across sectors and across the value chain, Wahi added.</p>.<p>Overseas investments in construction (infrastructure) activities increased to $7.87 billion in 2020-21 from $2 billion in the previous financial year. FDI into pharmaceuticals rose to $1.49 billion from $518 million in 2019-20.</p>.<p>However, FDI in the services sector and trading dipped to $5 billion and $2.6 billion during the last financial year, from $7.85 billion and $4.57 billion in 2019-20, respectively.</p>.<p>Telecommunications also witnessed a decline from $4.44 billion in 2019-20 to $392 million in 2020-21.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/government-considering-policy-tweak-to-allow-100-fdi-in-bpcl-990975.html" target="_blank">Government considering policy tweak to allow 100% FDI in BPCL</a></strong></p>.<p>The other sectors where FDI has recorded a decline in the last fiscal include construction development, automobile, chemicals, hotel and tourism.</p>.<p>Nangia Andersen LLP Partner Sandeep Jhunjhunwala said that due to Covid-19 demand for technological infrastructure, the consumer spending on these has soared multi-fold on account of requirements such as remote learning, work from home and virtual healthcare.</p>.<p>"The technological solutions offered by Indian IT multinationals for various business and government initiatives have also created massive demands in the pandemic period, both offshore and onshore," he said.</p>.<p>Jhunjhunwala added that the production-linked incentive scheme and Make in India campaign for manufacturing IT hardware in India have also pulled the attention of global investors to look at India as a destination for greenfield or brownfield projects.</p>
<p>Foreign direct investment (FDI) in computer software and hardware jumped over threefold to $26.14 billion during 2020-21 on account of significant growth in the country's technology space, according to data from the Department for Promotion of Industry and Internal Trade.</p>.<p>The sector received $7.67 billion FDI in 2019-20 and $6.41 billion in 2018-19, the data showed.</p>.<p>The computer software and hardware sector accounted for about 43 per cent in the total $59.63 billion foreign inflows that India attracted in 2020-21.</p>.<p>The technology space in India is growing significantly on the back of the rapid end-to-end digitisation of businesses, Deloitte India Partner Rajat Wahi said.</p>.<p>"This has especially accelerated during the lockdowns over the last year that has forced businesses to automate processes across the value chain — and this is likely to further accelerate this year and in the next 2-3 years.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/economy-business/foreign-direct-investment-jumps-19-to-5964-billion-in-2020-21-989436.html" target="_blank">Foreign direct investment jumps 19% to $59.64 billion in 2020-21</a></strong></p>.<p>"This technology enablement is attracting overseas investors to India, where hardware, software and SaaS (software-as-a-service) are seeing a big push in India's FDI," he said.</p>.<p>Most technology practices are getting great traction today, especially in segments like e-commerce, and a lot of the FDI is likely to be used to support technology enablement across sectors and across the value chain, Wahi added.</p>.<p>Overseas investments in construction (infrastructure) activities increased to $7.87 billion in 2020-21 from $2 billion in the previous financial year. FDI into pharmaceuticals rose to $1.49 billion from $518 million in 2019-20.</p>.<p>However, FDI in the services sector and trading dipped to $5 billion and $2.6 billion during the last financial year, from $7.85 billion and $4.57 billion in 2019-20, respectively.</p>.<p>Telecommunications also witnessed a decline from $4.44 billion in 2019-20 to $392 million in 2020-21.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/government-considering-policy-tweak-to-allow-100-fdi-in-bpcl-990975.html" target="_blank">Government considering policy tweak to allow 100% FDI in BPCL</a></strong></p>.<p>The other sectors where FDI has recorded a decline in the last fiscal include construction development, automobile, chemicals, hotel and tourism.</p>.<p>Nangia Andersen LLP Partner Sandeep Jhunjhunwala said that due to Covid-19 demand for technological infrastructure, the consumer spending on these has soared multi-fold on account of requirements such as remote learning, work from home and virtual healthcare.</p>.<p>"The technological solutions offered by Indian IT multinationals for various business and government initiatives have also created massive demands in the pandemic period, both offshore and onshore," he said.</p>.<p>Jhunjhunwala added that the production-linked incentive scheme and Make in India campaign for manufacturing IT hardware in India have also pulled the attention of global investors to look at India as a destination for greenfield or brownfield projects.</p>