FDI equity inflow in R&D sector in India rises to $343.64 million in 2021

India attracted $343.64 million foreign direct investment (FDI) equity inflow in the research and development (R&D) sector during the calendar year 2021, which is 516 per cent higher when compared to the previous year, as per the government data released on Tuesday.

FDI is permitted under 100 per cent automatic route in R&D sector subject to applicable laws/regulations, security and other conditionalities.

Karnataka is the top FDI Equity recipient state in R&D during 2021 followed by Telangana and Haryana.

The states like Telangana, Karnataka, Haryana, Andhra Pradesh and Tamil Nadu registered more than 250 per cent growth in FDI in R&D in 2021 when compared with the previous year, according to data released by the Ministry of Commerce & Industry.

Singapore is the top investing country in R&D during 2021 with 40 per cent share of total FDI Equity in R&D followed by Germany (35 per cent) and USA (11 per cent).

Further, FDI Equity inflow from several countries like Germany, Mauritius, France, Singapore, Oman and USA showed an increase of more than 200 per cent as compared to 2020.

Daimler Truck Innovation Center was the top FDI Equity inflow recipient company in R&D during 2021 with 35 per cent share of total FDI Equity in R&D followed by Aragen Life Sciences Private Limited (34 per cent) and Stelis Biopharma Private Limited (21 per cent), the Ministry of Commerce & Industry said in a statement.

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, the ministry said.

Research and Development (R&D) plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth.

Foreign Direct Investment (FDI) infuses long-term sustainable capital in the economy and contributes towards technology transfer, development of strategic sectors, greater innovation, competition and employment creation amongst other benefits. It has been a continuous endeavour of the Government to attract and promote R&D-intensive FDI in order to supplement domestic capital, technology and skills for accelerated economic growth and development, the ministry said.

( With inputs from ANI )

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