FDI Inflow reaches 61.96 USD Billion in 2017-18

Why in the news ?
  • Foreign direct investment in India increased to USD 61.96 billion in 2017-18.

 

More on news
  • Measures taken by the Government on FDI policy liberalization along with improvement in ease of doing business climate has resulted in growth of total FDI inflows.
  • The country has been recording highest ever FDI since 2015-16.
  • It increased from 55.56 USD billion in 2015-16 to 60.22 USD billion in 2016-17 and reached to 61.96 USD billion in 2017-18.
  • However, according to an UNCTAD report, foreign direct investment (FDI) to India decreased to USD 40 billion in 2017 from USD 44 billion in 2016, while outflows from India, the main source of investment in South Asia, more than doubled.
  • Year wise increase in the total FDI inflows is given below:

Sr. No.

Financial Year

Total FDI Inflow

(in USD billion)

1.

2013-14

FDI

  • Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
  • Foreign direct investments are distinguished from portfolio investments (FPI) in which an investor merely purchases equities of foreign-based companies.
  • The key feature of foreign direct investment is that it is an investment made that establishes either effective control of, or at least substantial influence over, the decision making of a foreign business.
  • The ability to attract large scale Foreign Direct Investment (FDI) into India has been a key driver for policy making by the Government.
  • India has already marked its presence as one of the fastest growing economies of the world. It has been ranked among the top 10 attractive destinations for inbound investments.
  • Since 1991, the regulatory environment in terms of foreign investment has been consistently eased to make it investor-friendly.
Source

PIB, News18




Posted by Jawwad Kazi on 19th Jul 2018