THE UNRAVELING TAPESTRY: ASSESSING THE IMPACT OF COVID-19 ON FOREIGN DIRECT INVESTMENT (FDI) IN INDIA

ABSTRACT: Foreign Direct Investment (FDI) is the investment made by a foreign company in the Indian market. FDI is considered to be an important source of economic growth and development in India. The Covid-19 pandemic has affected the global economy, including India. The pandemic has caused a disruption in supply chains, reduced demand, and a decline in economic activity, leading to a decline in FDI inflows. According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), India has attracted FDI worth $35.73 billion in the financial year 2019-20. However, due to the pandemic, FDI inflows in the country have fallen by 43% in the April-June quarter of 2020 compared to the same period last year. The Indian government has taken several measures to attract FDI during the pandemic. In May 2020, the government announced reforms in various sectors, including agriculture, mining, and defense, to attract more FDI. The government has also relaxed several FDI norms to attract foreign investors. Despite the pandemic, India remains an attractive destination for foreign investors due to its large market, skilled workforce, and favorable business environment. In conclusion, while the Covid-19 pandemic has affected FDI inflows in India, the country remains an attractive destination for foreign investors. The Indian government has taken measures to attract more FDI during the pandemic, and it is expected that FDI inflows will increase in the coming months. In this paper an attempt is made to analyse the impact of covid-19 on FDI flow into country. For this purpose, sector wise and country wise analyse has been made.