FDI inflows into services sector grew by about 47% to $2.64 billion in April-January last fiscal on account of various measures taken by the government to improve ease of doing business and attracting foreign investment. The sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received foreign direct investment (FDI) worth $1.80 billion during April-January 2013-14.
With this, overall foreign inflows in the country rose by 36% to $25.52 billion from April-January, 2015 according to the Department of Industrial Policy and Promotion (DIPP). The amount was $18.74 billion in the year-ago period.
The services sector contributes over 60% to India's GDP. In 2012-13, foreign investment in services had fallen to $4.83 billion from $5.21 billion in 2011-12. FDI in the sector accounts for 18% of the country's total foreign investment inflows.
Further, the government is also focusing on enhancing services exports. It is organizing a global services exhibition in April. The other sectors where inflows have recorded growth include telecom, whose FDI stood at $2.83 billion, automobile at $2.04 billion and power at $612 million.