Karnataka is the top FDI Equity recipient state in R&D during 2021 followed by Telangana and Haryana.The following states showed growth of more than 250 per cent during 2021 compared to previous 2020.
New Delhi: India attracted USD 343.64 million FDI equity inflow in R&D sector during C.Y. 2021 (Calendar Year) which is 516 per cent higher as compared to previous C.Y. 2020 (USD 55.77 million). 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 C.Y. 2021 followed by Telangana and Haryana. The following states showed growth of more than 250 per cent during C.Y. 2021 compared to previous C.Y. 2020: Telangana, Karnataka, Haryana, Andhra Pradesh and Tamil Nadu.
Singapore is the top investing country in R&D during C.Y. 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 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 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).
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.
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 endeavor 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.