FDI inflows rise 29 %

The previous highest FDI inflow was in FY12 when the country received $46.55 billion

Foreign Direct Investment (FDI) inflows into India increased by 29 per cent to a record $40 billion during in the financial year ended March.

If re-invested earnings ($10 billion), other capital ($4.4 billion) and equity capital of unincorporated bodies ($1 billion) are taken into account along with $40 billion worth equity inflows, the total FDI flows in FY'16 is the highest-ever at $55.4 billion.

The FDI equity inflows in March 2016 went up by 16.5 per cent to $2.46 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP).

Of the FDI inflows (equity) in FY'16, services sector (including financial, banking, insurance, non-financial / business, outsourcing, R&D, courier, technology testing and analysis) attracted maximum investments of $6.88 billion followed by computer hardware and software ($5.90 billion), trading business ($3.84 billion) and automobile industry ($2.52 billion).

Maximum inflows (equity) were from Singapore ($13.69 billion), followed by Mauritius ($8.35 billion), the US ($4.19 billion), the Netherlands ($2.64 billion) and Japan ($2.61 billion). The previous highest FDI inflow was in FY12 when the country received $46.55 billion, which was a 34 per cent increase over $34.8 billion it got in FY11.

However, India recorded its largest-ever percentage increase in FDI when it received $22.8 billion in FY07, representing a 155 per cent increase over the $8.9 billion in FY06.

This includes equity, re-invested earnings and other capital.

Though the government plays an active role in investment promotion, “the investment decisions of investors are based on the macro-economic policy framework, investment climate in the host country, investment policies of the trans-national corporations and other commercial considerations,” commerce & industry minister Nirmala Sitharaman had said earlier. She said to boost investment environment and attract foreign investments the government had brought in FDI-related reforms and liberalised several major sectors.