“FDI inflows in the agriculture services during the above period have been lower as compared to computer software & hardware, telecommunications, automobiles etc
India’s agriculture sector received up to $1763.57 million (Rs. 8747 crore) foreign direct investments (FDI) between April 2000 and June 2015, outperforming several key sectors such as textiles, mining and electronics.However, FDI inflows in computer software & hardware, telecommunications and automobiles were better compared to that in the agriculture services.On Tuesday, the Department of Industrial Policy & Promotion (DIPP) revealed sector-wise foreign direct investments for the period April 2000 - June 2015.“FDI inflows in the agriculture services during the above period have been lower as compared to computer software & hardware, telecommunications, automobiles etc. In agriculture machinery,” Agriculture Ministry said in a statement.Last month, the government had relaxed FDI norms in 15 key sectors including agriculture, and allowed 100% FDI in five tree plantation crops i.e. coffee, rubber, cardamom, palm oil tree and olive oil. Earlier 100% FDI was allowed only in tea plantation.The easing of the FDI rule was aimed at allowing foreign investors to engage in plantation activities in India, thus bringing more foreign investments, reducing imports bill and boosting exports.The development has attracted mixed responses from the agriculture associations, who feel that due to several domestic factors, including high cost, low profit and high tax structure, the policy will fail to bring any foreign investments.The industry emphasised on removing domestic bottlenecks and restructuring tax policies to encourage foreign players.