FDI is permitted on a 100% automatic route in the research and development (R&D) sector, subject to applicable laws/regulations, security and other conditions.
The ministry also said that Karnataka is the top recipient of FDI equity in R&D in 2021, followed by Telangana and Haryana.
Singapore is the top country to invest in R&D in 2021 with a 40% share of total FDI equity in R&D, followed by Germany (35%) and the United States (11%), a- he added.
Daimler Truck Innovation Center was the top company receiving equity inflows in 2021, followed by Aragen Life Sciences Private Ltd and Stelis Biopharma Private Ltd, according to the ministry.
“These trends point to a robust and growing R&D sector that would benefit the economy by driving innovation, increasing productivity, thereby leading to higher economic growth,” he added.
Research and development (R&D) plays an important role in the development of a knowledge-based economy that can pave the way for higher economic growth.
Foreign direct investment infuses long-term sustainable capital into the economy and contributes to technology transfer, development of strategic sectors, greater innovation, competition and job creation, among other benefits, did he declare.