FY17 to end with record high FDI

Overseas investment in India is likely to increase ending with financial year FY17, despite glitches in global growth.

FDI investment in the country has risen by 22 per cent to USD 35.8 billion (Rs crore 2,40,100 crore) in 9MFY17 as compared to the same period in previous fiscal year. The strong flow of overseas investment proves India is economically stable. However, FDI inflows worldwide has slowed down to almost 13 per cent owing to the uncertainty and lack of faith for growing environment.

India has witnessed total FDI including inflows into unincorporated bodies, reinvested earnings and other capital at USD 48 billion (Rs 3,21,940 crore) in 9MFY17 against USD 55.5 billion (Rs 3,72,243 crore) in FY16. More than 90 per cent of FDI is coming in through the automatic route, which has expanded in its scope over the last two years. Out of the total FDI flow, the services sector accounts 18 per cent, followed by the construction development, telecommunications, computer hardware and automobiles in 9MFY17.

In Union Budget 2017, the Centre has announced its decision to abolish foreign investment promotion board (FIPB) and promised more reforms to make things easier for the overseas investors.