Abbreviations:
DIPP - Department of Industrial Policy and Promotion
FDI - Foreign Direct Investment
BoP - Balance of Payments
UNCTAD - United Nations Conference on Trade and Development
UAE - United Arab Emirites
According to DIPP, FDI in India increased to US $ 61.96 billion in 2017-18
DIPP - Department of Industrial Policy and Promotion
FDI - Foreign Direct Investment
BoP - Balance of Payments
UNCTAD - United Nations Conference on Trade and Development
UAE - United Arab Emirites
According to DIPP, FDI in India increased to US $ 61.96 billion in 2017-18
- In previous FY it is $60 billion
Key Facts:
- Main sectors that received maximum FDI were
- Services
- Computer Softwares
- Hardware
- Telecommunications
- Construction
- Trading
- Automobile
- Major sources of FDI includes: Mauritius, Singapore, Japan, Netherlands, US, Germany, France and UAE
- According to UNCTAD report, FDI to India decreased to US $40 billion in 2017 from US $44 billion in 2016 while outflows from India, the main source of investment in South Asia, has doubled
BACKGROUND:
- FDI are considered Crucial for India as it needs around $1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
- Strong inflow of foreign investments mainly helps to improve the country's BoP situation and also strengthen the rupee value against other global currencies, especially dominant US dollar
- To attract inflow of foreign investment, the central government has announced several measures including liberalization of FDI policy and improvement in Business climate
