New Delhi: Foreign direct investment into India declined by about 10 per cent in August this year to USD 1.27 billion, the lowest figure in the last eight months. In August 2013, the country had received FDI worth USD 1.40 billion. Last time in December 2013, FDI into India was USD 1.10 billion.
However, for the April-August period of this fiscal, 2014-15, the foreign inflows showed a growth of 42 per cent to USD 12.01 billion as compared to USD 8.46 billion in the first five months of 2013-14, according to the data of the Department of Industrial Policy and Promotion.
Amongst the top 10 sectors, telecom received the maximum FDI of USD 2.33 billion in the 5 months, followed by services (USD 1.08 billion), pharmaceuticals (USD 903 million) and construction (USD 446 million). During the period, India received maximum FDI from Mauritius at USD 3.93 billion, followed by Singapore (USD 1.89 billion), Netherlands (USD 1.56 billion), Japan (USD 897 million), UK (USD 827 million) and the US (USD 394 million). In 2013-14, FDI inflows in India were USD 24.29 billion as against USD 22.42 billion in 2012-13. Decline in foreign investments could put pressure on the country’s balance of payments and may also impact the value of the rupee.
The Indian rupee on Friday snapped a two-day declining trend and bounced back by 39 paise to end at 61.44 against the US dollar. India requires around USD 1 trillion in the next five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth. The government is taking more steps to boost FDI in the country. It has raised the foreign investment limit to 49 per cent in defence manufacturing and relaxed the policy in construction sector. The government has also proposed to increase the FDI cap in insurance to 49 per cent.
