FDI in computer software, hardware jumps threefold to $26.14 bn in 2020-21: DPIIT data

New Delhi: 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 (DPIIT).

The sector received $7.67 billion FDI in 2019-20 and $6.41 billion in 2018-19, the data showed.

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.

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.

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.

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.

Telecommunications also witnessed a decline from $4.44 billion in 2019-20 to $392 million in 2020-21. The other sectors where FDI has recorded decline in the last fiscal include construction development, automobile, chemicals, hotel and tourism.