World Economy

India FDI Rises

India FDI  RisesIndia FDI  Rises

With the government taking steps to improve ease of doing business and attract foreign investment, foreign direct investment inflows into the services sector grew by 85.5% to $4.25 billion in April-December period, PTI reported. The sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received FDI worth $2.29 billion during April-December 2014, according to the department of industrial policy and promotion. The services sector contributes over 60% to Indian GDP. FDI in the sector accounts for 17% of the country’s total foreign investment inflows. In step with growth in FDI in important sectors like services, overall foreign inflows in the country rose by 37% to $39.32 billion during the first nine months of 2015-16. The amount was $28.78 billion in the year-ago period. An official said with the government further liberalizing foreign investment policies for the services sector in the budget, more inflows would come.  Finance Minister Arun Jaitley has proposed significant liberalization of FDI norms in a host of sectors including insurance, pension, asset reconstruction companies (ARCs) and stock exchanges.