Foreign investment up 13 per cent to USD 16.63 billion in First Half of Financial Year 2016

Foreign direct investment (FDI) in the country grew by 13 per cent to USD 16.63 billion during the April-September period of the current fiscal. Foreign direct investment (FDI) in the country grew by 13 per cent to USD 16.63 billion during the April-September period of the current fiscal. The foreign investment was USD 14.69 billion during April-September 2014, according to the latest figures of the Department of Industrial Policy and Promotion (DIPP).During the first half of the financial year, India received maximum FDI of USD 6.69 billion from Singapore followed by Mauritius (USD 3.66 billion), the Netherlands (USD 1.09 billion) and Japan (USD 815 million). Sectors which attracted highest foreign investment in the period includes computer software and hardware (USD 3.05 billion), trading (USD 2.30 billion), services and automobile (USD 1.46 billion each) and telecommunications (USD 659 million).During financial year 2014-15, foreign fund inflows grew at 27 per cent to USD 30.93 billion as against USD 24.29 billion in 2013-14 FDI reforms to boost investment in India: USIBC The US-India Business Council (USIBC) today said the liberalization of India's FDI policy in over a dozen sectors will further improve ease of doing business The US-India Business Council (USIBC) today said the liberalization of India’s FDI policy in over a dozen sectors will further improve ease of doing business and boost investments in the country. Putting more FDI proposals through the automatic route is a clear signal that the government is living up to the mandate of minimum government and maximum governance, USIBC President Mukesh Aghi said in a statement Applauding India’s latest reforms, USIBC said the move would “enable the ease of doing business in the country” and “will propel more investment and innovation”. ”If the government continues on the current trajectory of bold reforms, then India will easily surpass the USD 41 billion in FDI from the US companies,” Aghi said. He also said that relaxing the sourcing norms for single brand retailers who sell cutting edge technology products will clear many of the challenges that high-tech companies have had when it comes to taking advantage of the 100 per cent opening of the sector. The council is keen on further reforms in these sectors and additional liberalization that will aid the growth of bilateral trade. FDI in e-commerce still remains restricted, Aghi said adding the USIBC will continue to urge the Department of Industrial Policy and Promotion (DIPP) to allow at least 51 per cent foreign investment in e-commerce. Unveiling sweeping liberalisation of foreign investment norms, the government on November 10 opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms. The government has relaxed FDI norms in as many as 15 sectors including defense, single brand retail, construction development, civil aviation and LLPs to boost FDI in the country. Foreign investments are considered crucial for India, which needs around USD 1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Growth in foreign investments helps improve the country’s balance of payments (BoP) situation and strengthen the rupee.

Source- india.com
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