According to Reserve Bank of India's (RBI) latest report, foreign direct investment inflows in Indian equity fell to $16.05 billion in 2013-14 from $18.29 billion in 2012-13 and $23.47 billion in 2011-12. However, during 2013-14, overall FDI inflows in India rose by 8% to $24.29 billion as against $22.42 billion in FY13.
Further, overall FDIs, during the first quarter of FY15, jumped by 34 percent to $7.23 billion from $5.39 billion recorded in the corresponding period of the previous fiscal. 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).
The report also revealed that Singapore has overtaken Mauritius as the largest source of foreign equity inflows into India. Investments from Singapore amounted to $4.42 billion in 2013-14 as compared to $3.69 billion from Mauritius. During 2009-10, FDI inflows from Mauritius recorded at $9.8 billion.
FDI is considered crucial for India and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. 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. Furthermore, India 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.