FDI inflow increases by 18% to $46 billion in 2016: DIPP

According to data released by the Department of Industrial Policy and Promotion (DIPP), India attracted $46 billion foreign direct investment (FDI) in 2016.

It shows that, India’s FDI grew by 18% in 2016 as compared to $39.32 billion FDI inflows in 2015.

Key Facts
  • The main sectors which attracted the highest FDI inflows included services, telecom, trading, computer hardware and software and automobile.
  • Bulk of the FDI came in from Singapore followed by Mauritius, Netherlands and Japan.
Background
  • Foreign investments are considered crucial for India as it needs around 1 trillion dollars 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 balance of payments (BoP) situation and also strengthen the rupee value against other global currencies, especially dominant US dollar.
  • To attract inflow of foreign investments, the central government has announced several measures including liberalisation of FDI policy and improvement in business climate.
  • In the Budget 2017-18, Finance Minister further announced relaxation of foreign investment norms and also abolished Foreign Investment Promotion Board (FIPB).

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Categories: Business & Economy Current Affairs 2017

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