THE FDI TREND SO FAR

The budget proposes to increase the permissible FDI limit from 49% to 74% in insurance companies. For the 2000 to 2020 period, services sector (which includes insurance) had the highest share in FDI in India. More relaxed norms could see more investments in this sector. However, FDI for manufacturing sector has fallen, even as total FDI has increased in recent years. Also, India’s share in global FDI is still much lower than that of China