Foreign Direct Investments

Key investment destination: FDI inflows in India cross $1 trillion

Foreign direct investment (FDI) inflows into India have crossed the USD one trillion milestone in the April 2000-September 2024 period, firmly establishing the country's reputation as a safe and key investment destination globally. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative amount of FDI, including equity, reinvested earnings and other capital, stood at USD 1,033.40 billion during the said period. About 25 per cent of the FDI came through the Mauritius route. It was followed by Singapore (24 per cent), the US (10 per cent), the Netherlands (7 per cent), Japan (6 per cent), the UK (5 per cent), UAE (3 per cent) and Cayman Islands, Germany and Cyprus accounted for 2 per cent each. India received USD 177.18 billion from Mauritius, USD 167.47 billion from Singapore and USD 67.8 billion from the US during the period under review, as per the data. The key sectors attracting the maximum of these inflows include the services .

Limited appetite raises questions on insurance FDI growth projections

The pace of FDI utilisation has been slow. Among private-sector non-life insurers, no company has reached the current 74 per cent threshold

Canada's FDI into India has more than doubled since pandemic, shows data

The FDI numbers reflect a substantial investment in a venture such as a foreign company setting up a factory in India

Govt mulls new regulatory mechanism for FDI supervision and oversight

The government is considering setting up a foreign investment regulatory mechanism for post-investment review and monitoring in the country, according to sources. At present, the consideration is at the discussion level only, they added. "It has been observed that all countries do oversight on the FDI (foreign direct investment), which is coming into their country. People suggest that in India also, there should be an oversight mechanism. It's a kind of oversight on money, which is coming up in the country as FDI," one of the sources said. It can help ascertain that the FDI coming into the country is beneficial to the economy and originates from legitimate sources. India is a major destination for foreign direct investments given its 1.4 billion market, stable policies, demographic dividend, good investment returns and skilled workforce. The government has taken a series of measures to attract overseas investments like promoting ease of doing business through simplifying procedure

Odisha to hold investors' meet in January, eyes Rs 2.5 trn by 2029

The state Cabinet has approved investment proposals worth Rs 44,682 crore, achieving 90 per cent of the annual target

Net FDI in India rises to $5.5 billion in Apr-Jul 24, shows RBI data

The increase was due to an improvement in gross inward FDI, which grew by 23.6 per cent year-on-year (Y-o-Y) to $27.7 billion during the four months of FY25

India expected to see strong FDI inflows in coming quarters: Experts

With foreign direct investments (FDI) growing 47.8 per cent to USD 16.17 billion during April-June 2024, India is expected to see further acceleration in the inflow on account of a potential Fed rate cut, modest growth outlook in the US, and the country's favourable economic outlook, experts say. They also said that investment destinations have changed over the decade and have got more diversified, with capital flowing into new emerging sectors. Compared to eight years ago, power, construction, healthcare, chemicals, and non-conventional energy have now been attractive investment destinations, Rumki Majumdar, Economist, Deloitte India, said. "We foresee this trend of strong FDI to accelerate in the coming quarters. The anticipated US election results, a potential Fed rate cut, modest growth outlook in the US, and India's favourable economic outlook will likely attract global investors to India," she added. Aakash Dasgupta, Partner, IndusLaw, said that while the FDI inflow seems t

Not opposed to e-commerce, only want fair competition: Piyush Goyal

Says government aims to balance online and offline businesses, not stifle digital growth

Net foreign direct investment rises to $6.9 billion in Q1, shows RBI data

Manufacturing, financial services, communication services, computer services, and electricity and other energy sectors accounted for about 80 per cent of the gross FDI inflows

FDI in food processing sector down 30% to Rs 5,037 crore in 2023-24

Foreign direct investment (FDI) in India's food processing sector declined 30 per cent in the last fiscal to Rs 5,037.06 crore, according to official data. The FDI in the food processing sector stood at Rs 7,194.13 crore in 2022-23. According to the data presented by the Food Processing Industries Ministry in Lok Sabha, the FDI in food processing sector stood at Rs 5,290.27 crore in 2021-22 and Rs 2934.12 crore in 2020-21. FDI was Rs 6,414.67 crore in 2019-20; Rs 4430.44 crore in 2018-19; Rs 5,835.62 crore in 2017-18; Rs 4,865.85 crore in 2016-17; and Rs 3,312 crore in 2015-16 in the food processing sector. In order to enhance foreign investment in the food processing sector, the ministry has taken various measures, including 100 per cent FDI permitted through automatic route for the food processing sector subject to sectoral regulations. It has allowed 100 per cent FDI, under the government-approval route, for trading including through e-commerce, in respect of food products ...

FDI in manufacturing rises 69% to $165 bn during 2014-24: Jitin Prasada

Foreign direct investment inflows in the manufacturing sector during 2014-24 rose by 69 per cent to USD 165.1 billion, Parliament was informed on Friday. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that India is rapidly emerging as a preferred country for foreign investment in the manufacturing sector " FDI equity inflow in the manufacturing sectors in the last ten financial years (2014-24) has increased by 69 per cent to USD 165.1 billion as compared to USD 97.7 billion in the previous ten financial years (2004-14)," he said. He also said that the total FDI inflow of USD 383.50 billion has been reported in the country during the past five financial years (2019-20 to 2023-24). Replying to a separate question, he said that the initiatives taken by the Government have led to a decline in dependency on imports in several sectors including mobiles. The import of mobile phones has decreased from Rs 48,609 crore in 2014-15 to Rs

Strategic reforms can enhance India's appeal to global investors: GTRI

Strategic reforms are needed to enhance India's appeal to global investors as despite having huge potential, FDI data shows that the country has not fully capitalised on its opportunities, think tank GTRI said on Thursday. Suggesting a four-step plan, the Global Trade Research Initiative (GTRI) said that measures which can help India position itself as a leading choice for foreign investors include reducing cost disadvantages for companies relocating to India, improving the Ease of Doing Business throughout the business lifecycle, and establishing a framework for evaluating investment proposals. India attracted USD 44.4 billion in FDI (foreign direct investment) in FY2024, which is only 1.1 per cent of its GDP. The country lagged significantly behind countries like China (USD 189.1 billion), Brazil (USD 86.1 billion) , Australia (USD 61.6 billion), and Canada (USD 52.6 billion) as noted in the World Development Report 2023, it said. It suggested that India must offer a more ...

Mid-tech FDI for job creation need of the hour: Business Standard panel

Panel stresses the need to keep import tariffs low and stable; says private sector required to create jobs as mentioned in Budget

Angel tax was on investments, such inflows should not be taxed: DPIIT Secy

Removal of the Angel tax for startups was a long pending issue as this levy was on investment coming into the country and such overseas inflows should not be taxed, a top government official said. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said the decision will help in attracting foreign investments, promoting innovation and further strengthening the startup ecosystem of the country, which is the third largest in the world. "So this was an ease of doing business issue as well as a tax issue. Ultimately, it was a tax not on income but on investments and investments should not get taxed, that is the basic idea," Singh told PTI. Giving a big relief to startups, the government on Tuesday announced removal of angel tax for all classes of investors. Angel tax (income tax at the rate of over 30 per cent) refers to the income tax that the government imposes on funding raised by unlisted companies, or startups, if their valuation ...

Budget 2024: Well-defined, well-responsible Budget, says Usispf Ceo Aghi

Describing the maiden budget of Modi 3.0 as a very well defined and responsible budget, the head of a India-centric American business and strategic advocacy group on Tuesday said that it would help in attracting more foreign direct investment and propel India's growth story. I think (it is) a very well-defined budget, a very well-responsible budget. We compliment the prime minister and the finance minister for delivering their budget, Mukesh Aghi, president and CEO of US India Strategic and Partnership Forum (USISPF) told PTI in an interview. When you look at the preliminary analysis of the budget, one thing is the budget is focused on job creation, is focused on skilling and is focused on attracting FDI into the country, he said responding to a question on the annual budget presented by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday. When you look at incentives for the first-time workers, guaranteed one month's salary, that's an important part. The budget is focus

FDI, R&D, manufacturing key to achieve $5 bn defence export: Study

The survey, conducted across 15 cities in India, saw participation from over 130 national and international arms, ammunition, and security equipment manufacturers, exporters, and startups

India's FDI equity inflow at five-year low of $44 billion in FY24

High interest rates in advanced economies, limited absorptive capacity locally likely reasons

New govt may liberalise FDI norms for more sectors, says DPIIT Secy

Says industry should prepare itself for a low tariff regime in the long run

Rupee to track Asian peers; bonds eye moves in US yields, foreign flows

The rupee closed marginally higher at 83.4225 on Friday. It logged a slight weekly loss compared to most Asian currencies, which rose week-on-week

CII-IGBC expects surge in private capex, FDI after Lok Sabha polls

It says top priority for new govt should be to strike balance between economic growth and environmental sustainability