FDI in manufacturing sector goes up 50% in 2014-15
India's manufacturing sector received Foreign Direct Investment (FDI) worth $9.61billion during the last financial year, registering an increase of more than 50% from previous year’s total inflow of $6.38 billion. According to the annual report released by the Reserve Bank of India (RBI), the country attracted whopping $24.74 billion FDI in the last fiscal, up 54% from previous year’s $16.05 billion and the highest since 2010. And the manufacturing sector accounted for more than one-third of the total overseas investment. Experts attribute this sharp rise in foreign investments to the “Make in India” initiative launched by the government and several other measures to ease the business process. “FDI mainly flowed into the manufacturing sector responding to the government’s ‘Make in India’ initiative, followed by financial services, retail and wholesale trade. Within the manufacturing sector, transport equipment and chemical sectors were the major recipients and accounted for about 50% of the total FDI in 2014-15,” said RBI analyzing the report. The flow of FDI in financial services sector grew by almost 200%, attracting $3.07 billion during last year as against $1.02 billion received a year ago, the data showed. Liberalizing foreign investment norms in various sectors has also turned the country as a preferred destination for overseas investors who poured in funds even in stock markets. “Foreign portfolio investors brought in about $41 billion to Indian equity and debt markets, making India the most attractive destination among emerging markets,” the RBI said, adding, “Policy measures have been undertaken with regard to easing of norms for FDI in certain sectors, allocation of natural resources, the subsidy regime, financial inclusion, employment and job creation for the youth and an improved and non-adversarial tax administration.” Other top FDI gainers in the last financial year included computer services and retail and wholesale trade industries. FDI in computer services rose from $934 million to $2.15 billion, while retail and wholesale trade attracted $2.55 billion investment, up 124% from $1.1 billion received during previous fiscal.
August 31, 2015 | 2:28pm IST.
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