 "FDI equity inflows up 48% after Make in India")
The growth in Foreign Direct Investment (FDI) has been significant after the launch of Make in India initiatives in September 2014, with 48 percent increase in FDI equity inflows during October 2014 to April 2015 over the corresponding period last year, according to Ministry of Commerce & Industry.
Ministry added that country witnessed unprecedented growth of 717 percent in 2014-15, to $ 40.92 billion of investment by foreign institutional investors (FIIs). The FDI inflow under the approval route saw a growth of 87 percent during 2014-15 with inflow of $ 2.22 billion despite more sectors having been liberalised during this period and with more than 90 percent of FDI being on automatic route.
“The increased inflow of FDI in 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. The Make in India initiatives of the Government and its outreach to all investors have made a positive investment climate for India which is evidenced in the results for the last financial year especially the second half,” said the Ministry.
The FDI inflow during the financial year 2014-15 was spread across the 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 & pharmaceuticals ($ 1.5 billion) and construction (Infra) activities ($ 0.75 billion).
Government amended the FDI policy to further enable 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. The government has allowed easy exit norms with rationalised area restrictions and due emphasis on affordable housing in construction sector. The FDI cap in insurance and pension sector has been raised to 49 per cent, while the government has allowed 100 per cent FDI allowed in railway infrastructure (excluding operations) and medical devices sector.
The Foreign Policy magazine, published by the Slate Group (a division of the Washington Post Company), in its present analysis on a vast number of parameters has rated India as the leading investment destination in the world.
Ministry added that country witnessed unprecedented growth of 717 percent in 2014-15, to $ 40.92 billion of investment by foreign institutional investors (FIIs). The FDI inflow under the approval route saw a growth of 87 percent during 2014-15 with inflow of $ 2.22 billion despite more sectors having been liberalised during this period and with more than 90 percent of FDI being on automatic route.
“The increased inflow of FDI in 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. The Make in India initiatives of the Government and its outreach to all investors have made a positive investment climate for India which is evidenced in the results for the last financial year especially the second half,” said the Ministry.
The FDI inflow during the financial year 2014-15 was spread across the 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 & pharmaceuticals ($ 1.5 billion) and construction (Infra) activities ($ 0.75 billion).
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Government amended the FDI policy to further enable 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. The government has allowed easy exit norms with rationalised area restrictions and due emphasis on affordable housing in construction sector. The FDI cap in insurance and pension sector has been raised to 49 per cent, while the government has allowed 100 per cent FDI allowed in railway infrastructure (excluding operations) and medical devices sector.
The Foreign Policy magazine, published by the Slate Group (a division of the Washington Post Company), in its present analysis on a vast number of parameters has rated India as the leading investment destination in the world.