New Delhi: Foreign direct investment (FDI) inflows into India reported a 26 per cent rise to USD 42.1 billion during the first half of the current fiscal year 2024-25. FDI have crossed the $1trillion in the April 2000-September 2024 period. The cumulative amount of FDI, including equity, reinvested earnings and other capital, stood at $ 1,033.40 billion during the period. Data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed this.
‘FDI has played a transformative role in India’s development by providing substantial non-debt financial resources, fostering technology transfers, and creating employment opportunities. Initiatives like ‘Make in India’, liberalised sectoral policies, and the Goods and Services Tax (GST) have enhanced investor confidence, while competitive labour costs and strategic incentives continue to attract multinational corporations, said Ministry of Commerce and Industry in a statement.
Over the last decade (April 2014 to September 2024), total FDI inflows amounted to $709.84 billion, accounting for 68.69 per cent of the overall FDI inflow in the past 24 years.
As per data, about 25 per cent of the FDI came through the Mauritius route. It was followed by Singapore (24 per cent), the US (10 per cent), the Netherlands (7 per cent), Japan (6 per cent), the UK (5 per cent), UAE (3 per cent) and Cayman Islands, Germany and Cyprus accounted for 2 per cent each. India received $177.18 billion from Mauritius, $167.47 billion from Singapore and $67.8 billion from the US during the period.
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The key sectors attracting the maximum of these inflows include the services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.
According to the Commerce and Industry Ministry, since 2014, India has attracted a cumulative FDI inflow of $667.4 billion (2014-24), registering an increase of 119 per cent over the preceding decade (2004-14).
According to data, this investment inflow spans 31 states and 57 sectors. FDI equity inflows into the manufacturing sector over the past decade (2014-24) reached $165.1 billion, marking a 69 per cent increase over the previous decade (2004 -14), which saw inflows of $97.7 billion.
Most sectors, except strategically important sectors, are open for 100 per cent FDI under the automatic route. FDI is allowed through the automatic route in most of the sectors, while in areas like telecom, media, pharmaceuticals and insurance, government approval is required for foreign investors. Under the government approval route, a foreign investor has to get a prior nod from the ministry or department concerned, whereas, under the automatic route, an overseas investor is only required to inform the Reserve Bank of India (RBI) after the investment is made.
At present, FDI is prohibited in some sectors. They are lottery, gambling and betting, chit funds, Nidhi company, real estate business, and manufacturing of cigars, cheroots, cigarillos and cigarettes using tobacco.
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