Foreign direct investment (FDI) in India increased by 34 percent to $1.92 billion in the month of June 2014 as compared to $1.44 billion in the same month of previous year. During the first quarter of FY15, FDI jumped by 34 percent to $7.23 billion from $5.39 billion recorded in the corresponding period of the previous fiscal.
The sectors that received highest inflows during April-June in this fiscal include telecommunications ($2 billion), services ($738 million), pharmaceuticals ($680 million) and construction ($ 281 million). Country wise, maximum FDI during the reported period was received form Mauritius at $2.61 billion, followed by Singapore ($ 1.18 billion), the UK ($567 million), Japan ($695 million) and the US ($249 million).
FDI is considered crucial for India, which requires around $1 trillion in the 12th five year plan (2012-2017) to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Meanwhile, in order to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension and petroleum and natural gas among others. Recently, the government has raised the foreign investment limit to 49 percent in defence manufacturing and also relaxed the policy in railway and construction sector. During FY14, FDI inflows in India rose by 8% to $24.29 billion as against $22.42 billion in FY13.