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Surge in FDI
Why is it in news?
- The Ministry of Commerce and Industry released Foreign Direct Investment (FDI) data for the first five months of the current financial year.
Details:
- During April-August 2020 period, India received the highest total FDI for the first five months of any financial year.
- Total FDI inflows surged from $11.51 billion between April and June to $35.73 billion by the end of August.
- Equity FDI more than quadrupled from $6.5 billion between April and June to $27.1 billion by August.
- The increased FDI is a result of FDI policy reforms, investment facilitation and ease of doing business.
More About FDI:
- FDI is an investment made by a company or individual in a country.
- It could be in A form of either establishing business operations or acquiring business assets in the other country.
- The ability to attract large scale FDI into India has been a key driver for policy making by the Government.
- Since 1991, the regulatory environment in terms of foreign investment has been consistently eased to make it investor-friendly.