FDI in India up 30% at $21.6 billion in April-September
07 Nov 2016
Foreign direct investment (FDI) into the country grew over 30 per cent to $21.62 billion during the first half of 2016-17, against FDI worth $16.63 billion in April-September of 2015-16, official sources said.
"Ease of doing business and relaxation in the FDI policy are helping attract more and more FDI. The recent easing in sectors like civil aviation and construction will help in attracting more overseas funds," he added.
Much of the FDI, however, came from the main sources such as Mauritius, Singapore, the Netherlands and Japan, the official pointed out.
The sectors that receive maximum inflows include computer hardware and software, trading business, automobile industry and chemicals.
For the financial year 2015-16, FDI went up 29 per cent to $40 billion as against $30.93 billion in the previous fiscal.
Foreign investments is crucial for investment in India, which nurses a perennial balance of payments and guard the rupee against further collapse.
India needs around $1 trillion to build its infrastructure such as ports, airports and highways and push growth to a higher trajectory.
The government, meanwhile, is considering easing sectoral restrictions in segments like retail trading for foreign players to facilitate greater FDI in the country. The commerce and industry ministry is expected to discuss the sector specific issues with the departments and ministries concerned, sources said.
In June this year, it lifted certain restrictions in over a dozen sectors, including civil aviation, food processing, defence and pharmaceuticals. DIPP secretary Ramesh Abhishek recently stated that the government is trying to address specific policy issues in various sectors.
''We are also trying to address specific policy issues in various sectors. We have identified a number of them that remain despite liberalisation in FDI (policy). There could be issues in various sectors,'' he had said.
