FDI inflow in R&D sector grows six-fold YoY to Rs 344 million in 2021

Karnataka attracted the most FDI in this space, followed by Telangana and Haryana. Flows into Karnataka were up more than 250% YoY

India witnessed a six-fold jump in foreign direct investment (FDI) equity inflow of $343.64 million in the Research and Development (R&D) during the calendar year 2021 as compared to the same period a year earlier.

FDI is permitted under 100 per cent automatic route in the R&D sector, subject to applicable laws, regulations, and  security. Robust FDI inflows in R&D space play an important role in the development of a knowledge-based economy, paving the way for higher economic growth.

According to data released by the industry department, Karnataka was the top FDI equity recipient state in R&D during 2021.