Foreign direct investment (FDI) into India grew by 28 percent to $16.33 billion during the April-June quarter of 2019-20 (Q1 FY20). As per latest figures released by the Department for Promotion of Industry and Internal Trade (DPIIT), the foreign fund inflows in April-June 2018-19 stood at $12.75 billion.
Data further indicated that key sectors that received maximum foreign investment during Q1FY20 include services ($2.8 billion), computer software and hardware ($2.24 billion), telecommunications ($4.22 billion), and trading ($1.13 billion). It also highlighted that Singapore was the largest source of FDI during April-June 2019-20 with $5.33 billion investments, followed by Mauritius ($4.67 billion), the US ($1.45 billion), the Netherlands ($1.35 billion), and Japan ($472 million).
FDI is important as India will require huge investments in the coming years to overhaul its infrastructure sector to boost growth. Recently, the government relaxed foreign investment norms in sectors like brand retail trading, coal mining and contract manufacturing, in order to boost the ailing economy.