FDI growth hits 5-yr low in FY18

FPI outflow at 10-yr high in H1 2018

Foreign direct investment (FDI) in India seems to be petering out with the inflows growth rate recording a fiveyear low of 3 per cent at $44.85 billion in 2017-18.

According to the latest data of the Department of Industrial Policy and Promotion (DIPP), FDI in 2017-18 grew by only

3 per cent to $44.85 billion.

Foreign inflows in the country grew by 8.67 per cent in 2016

17, 29 per cent in 2015

16, 27 per cent in 2014-15, and 8 per cent in 2013-14.

However, FDI inflows recorded a negative growth of 38 per cent in 2012-13.

According to experts, it is critical to revive domestic investments and further ease of doing business in the country to attract foreign investors.

Anil Talreja, Partner, Deloitte India, said the low growth of FDI in the consumer and retail sectors can be mainly attributed to uncertainty and complexity of the FDI policy.

"While the government has taken substantial efforts in relaxing the regulations as well as removing ambiguities, global consumer and retail companies are still hesitant to take decisions to invest in India," he said.

Meanwhile, overseas investors have pulled out nearly ~480 billion from Indian capital markets in the first six months of 2018, making it the steepest outflow in a decade, following high crude oil prices and trade war worries.

They withdrew a net sum of ~414 billion from the debt markets, besides, a net amount of ~64.3 billion from equities during January-June period of the year, taking the total outflow to ~478 billion, latest update with depositories showed.

Foreign inflows in the country grew by 8.67 per cent in 2016-17, 29 per cent in 2015-16, 27 per cent in 2014-15, and 8 per cent in 2013-14