NEW DELHI: Foreign direct investment (FDI) flow into India increased nine per cent to $60.08 billion in 2016-17 from $55.6 billion in 2015-16, Commerce and Industry Ministry said in a statement on Friday. The FDI equity inflow received during 2016-17 is the highest ever for a particular financial year, it added.
FDI policy easing and improvement in ease of doing business help promote domestic industry, restricts import, create jobs and results in conserving valuable foreign exchange.
During the past three years, the government eased foreign investment norms in 21 sectors covering 87 areas. The ministry explained that India needs around $1 trillion (`6.4 lakh crore) for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
The government had relaxed provisions in construction development, broadcasting, retail trading, air transport, insurance and pension.
FDI helps improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar. In addition, it promotes domestic industry, restricts import, create jobs and results in conserving valuable foreign exchange, the ministry said.
The ministry also pointed out that the Make in India initiative (October 2014 to March 2017) helped increase the FDI flows by 62 per cent to $99.72 billion against $61.41 billion during the previous 30 months (April 2012 to September 2014).