FDI in services up 20% to $1.46 billion in first half of 2015-16
The flow of Foreign Direct Investment (FDI) in India’s services sector surged by about 20% to $1.46 billion (Rs.9404 crore) during the first half of the current financial year, a government data said. Total FDI inflows in the services sector was worth $1.22 billion (Rs 7,366 crore) during the corresponding period of the last fiscal, according to the Department of Industrial Policy and Promotion (DIPP). Services sector, which consists of banking, insurance, outsourcing, R&D, courier and technology testing segments, boasts a share of about 53% in the country’s total Gross Domestic Product (GDP). The sector has, during the last decade, emerged as the fastest-growing contributor to the Indian economy. Considering the number of reforms the government has taken to push the ease of doing business in the country, its total share in India’s GDP is expected to reach 62% by 2020. How fast the Indian economy will grow depends on how fast the government implements its regulations. It has taken plenty of initiatives to ease its FDI policy, under “Make in India” campaign, to bring in more FDI inflows in the country. Earlier this year, the government had increased the FDI cap in insurance sector to 49%. In banking sector also, it had liberalised the norms and allowed portfolio investors to buy up to 74% stake in local private banks. Other important sectors which attracted significant amount investments from overseas during the period include computer software and hardware ($3.05 billion), trading ($2.3 billion) and automobile ($1.46 billion). FDI inflows in the services sector almost doubled to $4.44 billion (Rs.27,369 crore) in 2014-15 from $2.22 billion (Rs.13,294 crore) in 2013-14.
December 14, 2015 | 02:15pm IST