You are here: Home » Economy & Policy » News
Business Standard

FDI up 9% in FY17 to highest level of $43.48 bn: Govt

During the last three years, govt eased foreign investment norms in 21 sectors covering 87 areas

Press Trust of India  |  New Delhi 

FDI, dollar
Photo: Shutterstock

Inflow of (FDI) into India increased by 9 per cent to record level of $43.48 billion in 2016-17 on account of reform measures undertaken by the government.

In 2015-16, the country had attracted $40 billion foreign investments.

"Increased inflows in the country are largely attributed to intense and bold policy reforms the government undertook to bring pragmatism in the regime. The country has now become the top most attractive destination for foreign investment," the commerce and industry ministry said in a statement.

"The equity inflow received during 2016-17 is $43.48 billion... It is the highest ever for a particular financial year," it said.

It also said that the total including re-invested earnings increased to a "new all-time high" of $60.08 billion last fiscal from $55.6 billion in 2015-16.

During the last three years, the statement said, the government eased foreign investment norms in as many as 21 sectors covering 87 areas.

"This has resulted in increased inflows which year after year is setting up new records," it added.

Provisions were relaxed in sectors such as construction development, broadcasting, retail trading, air transport, insurance and pension.

Further, the ministry said the policy easing and improvement in ease of doing business help promote domestic industry, restricts import, create jobs and results in conserving valuable foreign exchange.

"It has been the endeavour of the government to put in place an enabling and investor friendly policy. The intent all this while has been to make the policy more investor friendly," it added.

Further, it said the equity inflows in the last three financial years rose by about 40 per cent to $114.41 billion as against $81.84 billion during previous three fiscal (2011-14).

Of this, worth $11.69 billion was received through the government approval route.

"The overall manufacturing sectors have witnessed a growth of 4 per cent in comparison to previous three financial years (from $48.03 billion to $50.09 billion)," it said.

After the launch of initiative (October 2014 to March 2017), the flows increased by 62 per cent to $99.72 billion as compared to $61.41 billion during the previous 30 months (April 2012 to September 2014).

Foreign investments are crucial for India, which needs around $1 trillion (about Rs 6.4 lakh crore) for overhauling its infrastructure sector such as ports, airports and highways to boost growth.

It helps improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.

RECOMMENDED FOR YOU