India's FDI inflows hit record $51 bn in April-February last fiscal

[Kickstarter101]

Government’s efforts to improve ease of doing business paying off.
India received $51 billion in foreign direct investment (FDI), the highest-ever FDI inflow in a fiscal, during April-February FY16, according to Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek.

Mr. Abhishek said the increased FDI inflow was the result of the government’s efforts to improve the ease of doing business and initiatives such as ‘Make In India.’

“The complex procedures and delays, which were the bane of our system for the last so many decades, are now being gradually dismantled,” he said.

According to data from the DIPP,the previous highest FDI inflow was in FY12 when the country received $46.55 billion, which was a 34 per cent increase over $34.8 billion it got in FY11 However, India recorded its largest-ever percentage increase in FDI when it received $22.8 billion in FY07, representing a 155 per cent increase over the $8.9 billion in FY06. This includes equity, re-invested earnings and other capital.


While the DIPP Secretary gave the numbers till February 2016, the DIPP has officially released data only till December 2015. India received FDI equity (excluding the re-invested earnings and other capital) worth $29.4 billion during April-December period in FY16. Of this, $10.98 billion was from Singapore and $6.1 billion from Mauritius.

Computer software and hardware sectors received $5.3 billion while services sector accounted for $4.2 billion. Automobile and telecom sectors received $1.7 billion and $1.07 billion respectively. Region-wise, the National Capital Territory (comprising Delhi, part of Uttar Pradesh and Haryana) received $10.6 billion while Mumbai got $5.2 billion.

Meanwhile, Commerce and Industry Minister Nirmala Sitharaman, in a written reply in Lok Sabha on Monday, said, “Due to the continuous reforms and initiatives being undertaken by the government, the FDI equity inflow has recorded a growth of 44 per cent in its 21 months tenure (June 2014 to Feb. 2016) from $43.87 billion to $63.16 billion over the preceding period of 21 months (Sept. 2012 to May, 2014).”

Though the government plays an active role in investment promotion, “the investment decisions of investors are based on the macro-economic policy framework, investment climate in the host country, investment policies of the trans-national corporations and other commercial considerations,” she said. The minister said to boost the investment environment and bring in foreign investments, the government had brought in FDI-related reforms and liberalisation touching upon 15 major sectors of the economy by putting more FDI proposals in the automatic route.

 

[Laozi]

These are robust signs of acceleration in economic growth.

What really is needed that interest rate should be lowered and System should be further reformed to become more business friendly and less corrupt.

 

[haviZsultan]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

 

[Dr Gupta]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

I do not think FDI correlates to remittances from NRI's

This is more about receiving investment from companies wanting to invest in various sectors.

 

[proud_indian]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

I think you are mixing two things together. Indian diaspora and remittances has nothing to do with high FDI figure but Indian government's rigorous "Make IN India" campaign.

 

[Tridibans]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

You do know that FDI is completely different than expats sending money back home, right?

 

[AntiToxic]

You do know that FDI is completely different than expats sending money back home, right?

Thats how they calculate FDI in "their country""......

 

[baajey]

All the foreign trips by Modi is bearing fruits.

 

[Echo_419]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

Khatte angoor

You do know that FDI is completely different than expats sending money back home, right?

Their definition of FDI is one country lending its companies money to implement projects in another country where the host country will provide a sky high guarantee

 

[haviZsultan]

You do know that FDI is completely different than expats sending money back home, right?

They are related as often investors are expats. They bring money into the country and have more to spend.

 

[Stephen Cohen]

They are related as often investors are expats. They bring money into the country and have more to spend.

Your financial concepts are Poor

These are the foreign INFLOWS into India ( all figures in US dollars )

1 India gets FDI 60 billion per annum

2 REMITTANCES are separate ; they are 70 Billion

3 Software exports 100 Billion

3 FII ( foreign institutional investors ie STOCK market / Corporate debts/ Bonds )
investment is 40 Billion

 

[Echo_419]

Your financial concepts are Poor

These are the foreign INFLOWS into India ( all figures in US dollars )

1 India gets FDI 60 billion per annum

2 REMITTANCES are separate ; they are 70 Billion

3 Software exports 100 Billion

3 FII ( foreign institutional investors ie STOCK market / Corporate debts/ Bonds )
is 40 Billion

Are you surprised?

 

[Stephen Cohen]

Are you surprised?

About what

 

[Tridibans]

They are related as often investors are expats. They bring money into the country and have more to spend.

Investors being expats or not is completely different. I think you are mixing things up.

FDI is counted in a completely different method than expats sending remittances home. If any foreign national invests in India, obviously irrespective of his origin, he is a citizen of that country. Basically, FDI is by companies investing for Indian operations or setting up shops while expats send money on personal level.

This is chart of India's FDI receipt in 2015 (No. 1 in the world at 31 billion USD)

http://www.tradingeconomics.com/india/foreign-direct-investment

This is remittance India received in 2015. (Again we are at the top)

http://blogs.wsj.com/indiarealtime/2015/04/15/india-wins-the-remittance-race-again/

 

[Immortan.Joe]

This is also affected by the Indian diaspora becoming the largest in the world in recent years. It has increased FDI and remittances going back home.They are also significantly richer than other Indians back at home and have more money to send to their loved ones back at home.

Remittances are not counted as FDI. They are denoted separately in national accounts.