FDI increases 15% to $ 26 billion in the first half of fiscal year 2020

NEW DELHI: Foreign direct investment (FDI) in India grew 15% to $ 26 billion during the first half of the current financial year, according to government data. Influx of FDI during the period from April to September the previous fiscal year was $ 23 billion.

The sectors that attracted maximum foreign entries during April-September 2019-20 included services ($ 4.5 billion), software and hardware ($ 4 billion), telecommunications ($ 4.3 billion), automobiles ($ 2.1 billion) and trade ($ 2.1 billion), trade and industry ministry data showed.

Singapore continued to be the largest source of FDI in India during the first half of the financial year with $8-billion investments. It was followed by Mauritius ($6.4 billion), the US ($2.2 billion), the Netherlands ($2.3 billion), and Japan ($1.8 billion).

FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth. Recently, the government relaxed foreign investment norms in sectors such as brand retail trading, coal mining and contract manufacturing.

Enthused by a record foreign investment inflow, India is optimistic of continuing to be one of the world’s favourite FDI destinations in 2020 on the back of Prime Minister Narendra Modi-led government’s liberalised norms and a significant jump in the ease of doing business ranking.

The secretary of the Department of Promotion of Industry and Internal Trade (DPIIT), Guruprasad Mohapatra, said that despite the slowdown in the global economy, foreign investment inflows into the country have not been affected.