FDI in India: Performance and Overview in FY 2019
India is among the world’s fastest growing economies and remains a top market for foreign direct investments (FDI) globally.
According to the Department of Industrial Policy and Promotion (DIPP), total FDI investments in India in the first nine months of fiscal year (FY) 2019 (April – December 2018) were approximately US$ 33.5 billion. The services sector attracted the highest FDI equity inflow of US$ 6.5 billion, followed by computer software and hardware – US$ 4.9 billion, and telecommunication – US$ 2.2 billion.
The top sources for the FDI were Singapore, with US$12.9 billion, Mauritius US$6 billion, Netherland US$2.9 billion, and Japan US$2.2 billion. Mauritius is a favorite hotspot for foreign investors, Indians living overseas, as well as Indian companies to route money into or out of India.
FDI cap in India
Since 2017, India has launched a series of reforms to liberalize its foreign investment norms in sectors such as infrastructure, construction, development, and single brand retail trading.These reforms have been instrumental in smoothening the process for obtaining required government approvals and thereby facilitating foreign investments in to the country.
Currently, India is among the most open economies globally for foreign investment. It allows FDI of up to 100 percent of the equity shareholding in most sectors under the automatic route.