India has attracted reaching US $208.99 billion foreign direct investment (FDI) during April 2014 to December 2017 period. The main sectors that received maximum FDI include services, computer software and hardware, telecommunications, construction, trading and automobile.
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.