FDI in India rose 3% to $61.96bn in 2017-18: Government
Foreign direct investment (FDI) in India increased to $222.75bn from $152bn, registering a growth of 3% ($61.96bn) in 2017-18, said DIPP Secretary Ramesh Abhishek. This was on account of steps taken by the Modi government to improve the business-climate. The government has liberalized FDI norms in sectors such as defense, medical devices, construction development, and civil aviation. Last fiscal, FDI inflows were at $60bn.
Who were the major gainers?
The main sectors that received maximum foreign inflows include services, computer software and hardware, telecommunications, construction, trading and automobile. Major sources of foreign inflows include Mauritius, Singapore, Japan, the Netherlands, the US, Germany, France and the UAE.
FDI to India decreased from $44bn to $40bn: UNCTAD
However, according to an UNCTAD report yesterday, FDI to India decreased to $40bn in 2017 from $44bn in 2016, while outflows from India more than doubled. Foreign inflows are crucial for India, which needs huge investments to overhaul its infrastructure. It helps improve the country's balance of payments situation and strengthen the rupee value against global currencies, especially US dollar.
India would welcome investments from Apple, Tesla: Suresh Prabhu
Speaking on FDI issues, Commerce and Industry Minister Suresh Prabhu said, "The government abolished foreign investment promotion board to facilitate overseas investments. Most of the sectors are under automatic approval route for FDI purposes." Prabhu also said India would welcome investments from all companies, including Apple and Tesla. Apple has asked for certain concessions for setting up manufacturing unit in the country.
