Services Current Affairs - 2019
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The Ministry of Commerce and Industry has released the data related to the Foreign Direct Investment (FDI) inflows during April-September 2018-19. The important aspects from this data:
- The Foreign direct investment (FDI) into India was declined by 11 per cent to USD 22.66 billion during April-September period of 2018-19.
- The FDI inflows during April-September 2017-18 stood at USD 25.35 billion.
- The FDI which attracted large FDI are services (USD 4.91 billion), computer software and hardware (USD 2.54 billion), telecommunications (USD 2.17 billion), trading (USD 2.14 billion), chemicals (USD 1.6 billion), and automobile industry (USD 1.59 billion).
- Singapore with the FDI of USD 8.62 billion inflow was the largest source of FDI during April-September 2018-19.
- Singapore was followed by Mauritius (USD 3.88 billion), the Netherlands (USD 2.31 billion), Japan (USD 1.88 billion), the US (USD 970 million), and UK (USD 845 million).
The Foreign Direct Investment growth witnessed a five-year low growth of 3 per cent at $ 44.85 billion in 2017-18. The decline in the growth rate of FDI could adversely affect the country’s balance of payments and may also impact the value of the rupee.
Tags: Automobile Industry • chemicals • computer software and hardware • FDI • Foreign Direct Investment • Japan • Mauritius • Ministry of Commerce and Industry • Netherlands • Services • Singapore • Telecommunications • Trading • UK • US
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.