New Delhi : Inflow of foreign direct investment (FDI) into India increased by 9 per cent to record level of USD 43.48 billion in 2016-17 on account of reform measures undertaken by the government. In 2015-16, the country had attracted USD 40 billion foreign investments.
“Increased FDI inflows in the country are largely attributed to intense and bold policy reforms the government undertook to bring pragmatism in the FDI regime. The country has now become the topmost attractive destination for foreign investment,” the commerce and industry ministry said in a statement.
“The FDI equity inflow received during 2016-17 is USD 43.48 billion… It is the highest ever for a particular financial year,” it said.
It also said that the total FDI including re-invested earnings increased to a ‘new all-time high’ of USD 60.08 billion last fiscal from USD 55.6 billion in 2015-16. During the last three years, the statement said, the government eased foreign investment norms in as many as 21 sectors covering 87 areas.
“This has resulted in increased FDI inflows which year after year is setting up new records,” it added. Provisions were relaxed in sectors such as construction development, broadcasting, retail trading, air transport, insurance and pension.
Further, the ministry said the FDI policy easing and improvement in ease of doing business help promote domestic industry, restricts import, create jobs and results in conserving valuable foreign exchange.
“It has been the endeavour of the government to put in place an enabling and investor friendly FDI policy. The intent all this while has been to make the policy more investor friendly,” it added.