In a positive surprise Foreign Direct Investment (FDI) in India increased by 30% at $21.62 billion during the April-September period of the current fiscal as against $16.63 billion in the same period last fiscal. Ease of doing business and relaxation in the FDI policy are helping to attract more and more FDI in the country.
During the period, the sectors which attracted maximum inflows include hardware and software, trading business, automobile industry and chemicals. India received maximum FDI from countries, including Mauritius, Singapore, the Netherlands and Japan. The government has recently eased FDI norms in sectors like civil aviation and construction this will help in attracting more overseas funds.
In 2015-16, FDI went up 29 percent to $40 billion as compared to $30.93 billion in the previous fiscal. FDI is considered essential for India, which needs around $1 trillion to overhaul its infrastructure such as ports, airports and highways to put growth on a higher trajectory. Growth in foreign investments helps improve the country's balance of payments (BoP) situation and strengthen the rupee.