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. Karnataka was followed by Telangana and Haryana. Flows into Karnataka were up more than 250 per cent in 2021 as