Step-by-step explanation:
INBOUND FOREIGN DIRECT INVESTMENTS
India has been a significant recipient of inbound foreign direct investments (FDI), attracting inflows from various countries and sectors. According to available data, India received total FDI inflows of approximately $81.72 billion in the financial year 2020-2021. Key sectors attracting FDI include information technology, telecommunications, automobile, healthcare, and renewable energy. The government's initiatives to improve the ease of doing business and policy reforms have contributed to India's appeal as an investment destination. While specific data from the balance of payments may vary, the Reserve Bank of India and the Department for Promotion of Industry and Internal Trade provide valuable insights on India's inbound FDI. India's large consumer market, skilled workforce, and ongoing economic growth make it an attractive choice for foreign investors looking to tap into its potential.
OUTBOUND FOREIGN DIRECT INVESTMENTS
India has experienced a notable increase in outbound foreign direct investments (FDI) in recent years. Indian companies are expanding their global presence by investing in various sectors abroad. While specific data on outbound FDI in the balance of payments may vary, Indian companies have made significant investments in sectors such as information technology, pharmaceuticals, manufacturing, energy, infrastructure, and services. Key destinations for Indian outbound investments include the United States, Singapore, the United Kingdom, the United Arab Emirates, and African countries. Indian companies are driven by factors such as market access, technology acquisition, natural resource exploration, strategic alliances, and global competitiveness. However, for more precise and up-to-date information on India's outbound FDI and balance of payments, it is recommended to refer to official reports from the Reserve Bank of India, Ministry of Commerce and Industry, and other reputable sources.
References
Check these websites for the references
www.rbi.org.in
www.dpiit.gov.in
www.commerce.gov.in
www.cii.in