Press Release (ePRNews.com) - INDORE, India - Nov 15, 2016 - With the government relaxing FDI policy and taking steps to improve ease of doing business, the Foreign Direct Investment in the country has grown by 77.5% to USD 5.28 billion in September in the current fiscal.
As per the data of the Department of Industrial Policy & Promotion, In September last year, the FDI had stood at USD 2.9 billion. During the period of April-September 2016, FDI in the country had grown by 30% to USD 21.62 billion as compared to USD 16.63 billion in the same period 2015. The sector, comprising banking, insurance, outsourcing, Research & Development, courier & technology testing, had attracted FDI worth USD 1.46 billion during April-September 2015, as per the record of Department of Industrial Policy & Promotion (DIPP)
Among the top 10 sectors, services received the maximum FDI of USD 2.29 billion during the first half of 2016, followed by telecommunications (USD 2.78 billion), trading (USD 1.48 billion), computer software & hardware (USD 1.03 billion) and automobile (USD 729 million).
The government has taken significant steps to improve ease of doing business in the country and to attract domestic & foreign investments. With increase in FDI in service sector, overall foreign inflows in the country grew by 30% to USD 21.62 billion during the first half of 2016-17. The key service sector contributes over 60% to India’s GDP. In the year 2015-16, foreign investment in services had grown to USD 6.89 billion from USD 4.44 billion in 2014-15.
The other sectors where inflow growth recorded during the period April-Sept. 2016-17 are telecom, trading, automobile, computer hardware & software, for $2.78 billion, $1.48 billion, $729 million, $1.03 billion, respectively. Further, the government is looking at more ideas to enhance services exports, for which it is organizing global services exhibition to fulfill the aim. Moreover, the commerce ministry has worked out a scheme to relax norms in the sector, including higher education to attract foreign players.
The government relaxed FDI norms in various sectors, that include defense and civil aviation to enhance FDI growth in the country. Foreign investments are treated as vital for India, which requires around USD 1 trillion for refurbishing its infrastructure sector like ports, airports and highways to increase growth. However, a strong foreign investments inflow will facilitate to pick up the country’s balance of payments (BoP) situation and make stronger the value of rupee against other global currencies, specially the USD.
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