FDI inflow rises 8%, hits record

new delhi — As a result of bold policy reforms, the total inflow of foreign direct investments into India reached a new high of $60.08 billion during 2016-17, registering an increase of eight per cent as compared to the previous fiscal year, the government said on Friday.

“The total FDI inflow grew by eight per cent to $60.08 billion in 2016-17 in comparison to $55.56 billion of the previous year. It is so far the highest for a particular financial year. Prior to this, the highest FDI inflow was reported in 2015-16,” the Commerce Ministry said in a statement here.

Increased FDI inflows in the country are largely attributed to intense and bold policy reforms the government undertook to bring pragmatism in the FDI regime, it said.

“Initiatives such as introduction of composite caps in the FDI policy and raising the Foreign Investment Promotion Board approval limit were also undertaken to promote ease of doing business in the country,” the ministry said.

“The scale of reforms can be gauged from the fact that during this period, 21 sectors covering 87 areas of FDI policy have undergone reforms. This has resulted in increased FDI inflows which year after year is setting up new records,” the statement said.

The FDI equity inflow received during 2016-17 at $43.48 billion was also the highest so far. “It shows an increase of nine per cent compared to 2015-16. India received an FDI of $40 billion in 2015-16.” —