India Takes Pride Of Place, Crosses $300 Billion FDI Milestone
India crossed the $300 billion foreign direct investment (FDI) milestone between April 2000 and September 2016, firmly establishing its credentials as a safe investment destination in the world.
33 percent of the FDI came through the Mauritius route, apparently because the investors wanted to take advantage of India's double taxation avoidance treaty with the island nation. India received $101.76 billion from Mauritius between April 2000 and September 2016. The cumulative FDI inflows during the period amounted to $310.26 billion.
The inflows in the first half of the current financial year was $21.62 billion, according to data compiled by the Department of Industrial Policy and Promotion. The other big investors have been from Singapore, the U.S., U.K. and the Netherlands.
Commenting on the $300 billion mark, industry bodies FICCI and CII have said that India is perceived as a safe and dynamic destination by global investors. FICCI said that the liberalisation of the FDI policy framework, major national development programmes such as Make in India, Digital India and Skill India, besides increasing competitiveness, have made India the preferred choice for investors globally.
"We see this trend of increasing inflows further strengthening in the coming years," FICCI president Harshavardhan Neotia said.
CII said that FDI flows have increased significantly and consistently in the last two years and the country would continue to remain as one of the most attractive destinations in the foreseeable future.
"Global investor sentiment is positive about India being a safe investment haven, despite the global economic climate remaining uncertain," it said.
India's services sector topped the table, receiving 18 percent of the cumulative equity FDI inflows followed by construction development, computer software & hardware, telecommunication and automobile.
India crossed the $300 billion mark at a time when the global economic slowdown has had a dampening impact on FDI flows which are expected to fall this year.
According to the World Investment Report 2016, global FDI flows rose by 38 percent to $1.76 trillion, the highest level since the global economic and financial crisis began in 2008. However, they still remain some 10 percent short of the 2007 peak.
"Looking ahead, FDI flows are expected to decline by 10-15 percent in 2016, reflecting the fragility of the global economy, persistent weakness of aggregate demand, effective policy measures to curb tax inversion deals," it said.
The report added that elevated geopolitical risks and regional tensions could further amplify the expected downturn.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
