Guwahati: India attracted USD 343.64 million FDI equity inflow in R&D sector during C.Y. 2021 (Calendar Year) which is 516% higher as compared to the previous C.Y. 2020 (USD 55.77 million).

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

During the fiscal year 2021, Karnataka is the leading FDI equity recipient state in R&D, followed by Telangana and Haryana. Telangana, Karnataka, Haryana, Andhra Pradesh, and Tamilnadu grew by more than 250 percent in the fiscal year 2021 compared to the fiscal year 2020.

Singapore is the leading R&D investment country in C.Y. 2021, accounting for 40% of total FDI Equity in R&D, followed by Germany (35%), and the United States (35%). (11 percent ). Furthermore, FDI equity inflows from numerous countries such as Germany, Mauritius, France, Singapore, Oman, and the United States of America increased by more than 200 percent compared to the previous fiscal year 2020.

Daimler Truck Innovation Center received the most FDI Equity inflows in R&D during C.Y. 2021, accounting for 35% of total FDI Equity in R&D, followed by Aragen Life Sciences Private Limited (34%), and Stelis Biopharma Private Limited (34%). (21 percent ).

These trends indicate a healthy and expanding R&D industry, which would assist the economy by boosting innovation and increasing productivity, resulting in faster economic growth.

R&D plays a crucial role in the development of a knowledge-based economy, which can pave the path for increased economic growth. Foreign Direct Investment (FDI) infuses long-term sustainable capital into the economy and contributes to knowledge transfer, strategic sector growth, increased innovation, competition, and job creation, among other benefits. The government has made a concerted effort to seek and encourage R&D-intensive FDI to support indigenous capital, technology, and skills for rapid economic growth and development.