iFDI into India touches USD 114.4 billion in 2015-17: report
Cumulative foreign direct investment (FDI) equity flows into India reached USD 114.4 billion during the last two financial years 2015-16 and 2016-17, according to a latest report by global accounting firm KPMG.
This is about 40 per cent higher than the USD 81.8 billion recorded in the preceding three years, from 2011-12 to 2013-14. UAE investors announced USD 2.5 billion worth of investments in India in a single month October 2017 including USD 1 billion investment by Abu Dhabi Investment Authority (ADIA), USD 1 billion by NRI-Emirati Investor's Group and a further USD 462 million investment by Lulu Group in Andhra Pradesh.
The report was prepared for the first India-UAE Partnership Summit (IUPS) held here last week.
Cumulative FDI into India reached USD 498.9 billion in 17 years from April, 2000 to June, 2017, according to the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
"In the financial year 2016-17, the country received the highest-ever FDI flow worth USD 43.5 billion," KPMG said.
"India also witnessed an increase in private equity/venture capital investments led by its growing start-up segment. Between January and September, 2017, India received USD 17.6 billion of private equity/venture capital spread across 402 deals," it said.
The report released at the IUPS, organised by the Business Leaders Forum (BLF) and commissioned by KPMG headed by Vikas Papriwal, Partner and Head of Markets, KPMG in the Lower Gulf and Middle East South Asia comes in the backdrop of the latest announcement of USD 1 billion by the newly- formed NRI-Emirati Investors' Group in addition to a further USD 1 billion by ADIA.
The Asian Development Bank (ADB) said the infrastructure sector in India requires USD 5.2 trillion worth of investments to sustain the economic growth and lend support to several government flagship programmes.
"The infrastructure sector is one of the key drivers of the Indian economy. India's infrastructure market, currently the third-largest in Asia, is anticipated to reach USD 6.6 trillion by 2025, constituting 12.5 per cent of the Asia- Pacific region. As of 2016, the sector contributes nearly 8 per cent to India's GDP," said the report.
Roadways and highways are key to the development of the infrastructure sector as they offer the required base for intra- and inter-state connectivity. The government has been trying to provide the necessary impetus to boost the sector.
In the federal budget 2017 18, the government has allocated USD 9.8 billion for national highways (an increase of 11 per cent from the previous year). The states are expected to provide an additional USD 1.2 billion for road development. In addition, the government has also announced the construction of 2,000 kms of coastal connectivity roads.
The country is witnessing increased investments in the sector on the back of reforms and higher budgetary allocation by the government, greater funding support from international lending institutions and several MoUs being signed with several countries.
In the federal budget 2017 18, the total capital and development expenditure of railways has been estimated at USD 20 billion, which includes USD 8.4 billion provided by the government.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.