BUSINESS

Big surge in FII inflows in 2014-15

Foreign Institutional Investment (FII) inflows surged a record 717 per cent to $40.92 billion in 2014-15 and Foreign Direct Investment (FDI) inflows jumped 48 per cent since Prime Minister Narendra Modi launched the ‘Make In India’ initiative in September 2014.

“These indicators showcase remarkable pace of approval being accorded by the government and confidence of investors in the resurgent India…the increased inflow of FDI into India, especially in a climate of contracting worldwide investments, indicates the faith that overseas investors have imposed in the country’s economy and the reforms initiated by the Government towards ease of doing business,” said an official release.

FDI equity inflows from October 2014 to April 2015 over the corresponding period last year rose 48 per cent, said the release. The inflows through the approval route grew 87 per cent during 2014-15 to $2.22 billion despite more sectors having been liberalised during this period and with more than 90 per cent of FDI being on automatic route, the release said.

Overall, FDI inflows during 2014-15 were spread across sectors — services sector ($3.2 billion), telecommunication ($2.8 billion), trading ($2.7 billion), automobile industry ($2.5 billion), computer software & hardware ($2.2 billion), drugs and pharmaceuticals ($1.5 billion) and construction (infra) activities ($0.75 billion).

The Modi Government amended the FDI policy to foster a positive investment climate and sync it with the vision and focus areas of the present Government such as affordable housing, Smart Cities, financial inclusion and reforms in railway infrastructure, it added.

The construction development sector was allowed easy exit norms with rationalised area restrictions and due emphasis on affordable housing. The cap on FDI in the insurance and pension sector was raised to 49 per cent, and 100 per cent FDI was allowed in the railway infrastructure (excluding operations) and also in the medical devices sector.

The definition of non-resident Indians (NRIs) itself was expanded to include OCI (Overseas Citizenship Of India) cardholders as well as PIO (Persons of Indian Origin) cardholders, and NRIs investment are now deemed to be domestic investment made by residents, thereby giving flexibility to NRIs to invest in India. India stands committed to have a FDI policy and regime, which is investor-friendly and also promotes investment leading to increased manufacturing, job creation and overall economic growth.



Make in India impact: FDI equity inflows up 48 per cent during October 2014 to April 2015 over the same period a year ago



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