FDI equity inflows up nearly 46% in 2015-16: Nirmala Sitharaman
The foreign direct investment (FDI) equity inflows in India have risen nearly 46% in 2015-16 as compared to 2013-14, Minister of State (Independent Charge) in the Ministry of Commerce and Industry Nirmala Sitharaman said on Wednesday.
In a written reply in the Rajya Sabha, the minister said, during the period October 2014 to May 2016, the country's FDI equity inflows have increased by 45.54% -- from $42.31 billion to $61.58 billion in comparison to previous 20 months-- February 2013 to September 2014.
Sitharaman further said, "India has been ranked 3rd in the list of top prospective host economies for 2016-18 in the World Investment Report (WIR) 2016 of UNCTAD."
The minister credited the 'Make in India' initiative, launched in September 2014, as the main reason behind rise in the country's FDI equity inflows.
'Make in India' was launched by Prime Minister Narendra Modi led-government with the aim of promoting India as an important investment destination and a global hub for manufacturing, design, and innovation.
Some of the sectors, which have received the highest FDI inflows after the launch of the 'Make in India' initiative are Services, Computer Software and Hardware, Trading, Construction (Infrastucture) activities, among others, showed the Ministry of Commerce and Industry data.
Total FDI equity inflows received by Services sector from October 2014 to May 2016 was $11,953.32 million, while Computer Software and Hardware received total FDI inflows of $8,061.21 million during the period under review.
Trading sector during the period received the total FDI equity inflows of $5,714.94 million, whereas in Construction (Infrastructure) activities it stood at $5,451.29 million.
However, sectors such as Defence Industries, Tea and Coffee and Dye-Stuffs have received the lowest total FDI equity inflows during October 2014 to May 2016.
Total FDI inflows in Defence Industries during the period stood at $0.17 million while in Tea and Coffee it was at $2.54 million and in Dye-Stuffs at $3.32 million.
"To further boost the entire investment environment and to bring in foreign investments in the country, the Government is taking various measures like opening up FDI in many sectors; carrying out FDI related reforms and liberalisation and improving ease of doing business in the country," cited Sitharaman in a statement.
Steps are being taken for development of support infrastructure to facilitate setting up of industries such as transport infrastructure, utility infrastructure, etc., she added.