FDI jumps to 8-month high of $3.6 billion in May

The foreign direct investment (FDI) flows into India more than doubled to $3.60 billion in May, the highest in the last eight months.

In May 2013, the country had received FDI worth $1.63 billion.

During April-May this fiscal, the foreign inflows grew by 34% to $5.30 billion as compared to $3.95 billion in the same period last year, according to the data of Department of Industrial Policy and Promotion.

The monthly FDI figures for May are the highest since September 2013 when the country received foreign investment of $4.13 billion.

Amongst the top 10 sectors, telecommunications received the maximum FDI in May at $1.51 billion followed by pharmaceuticals ($680 million), services ($574 million) and construction ($221 million).

During the month, India received maximum FDI from Mauritius at $2.28 billion, followed by Singapore ($982 million), UK ($545 million), Japan ($319 million) and the US ($154 million).

In 2013-14, the FDI inflows in India were $24.29 billion against $22.42 billion in 2012-13.

India requires around $1 trillion in the next five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth.

The government is taking more steps to boost FDI in the country. It has raised the foreign investment limit to 49% in defence manufacturing and relaxed the policy in construction sector. The government has also proposed to increase the FDI cap in insurance to 49%.