Sunday 11 March 2012

FDI up 31% to $27.5 bn in 2011

Foreign direct investment (FDI) in India went up by 31 per cent to USD 27.5 billion last year, notwithstanding uncertain economic environment globally.FDI inflows in 2010 totalled USD 21 billion.
The sectors that attracted maximum FDI last year include services (financial and non-financial), telecom, housing and real estate, and construction and power, according to the industry ministry’s latest data.
Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.Experts said, meanwhile, that the government should further streamline policies and make the environment more conducive to FDI.
“The government should allow 100 per cent FDI in sectors like domestic airlines and insurance sector to boost inflows and generate employment,” Ficci Secretary General Rajiv Kumar said.
During April-December, FDI moved up 51 per cent to USD 24.18 billion, from USD 16.03 billion in the same period of the previous year.
FDI inflows totalled USD 19.42 billion in 2010-11 financial year, down from USD 25.83 billion in 2009-10.
To boost FDI inflows, the government has liberalised the FDI regime, allowing overseas investment in bee-keeping and share-pledging for raising external debt.
Besides, 100 per cent foreign investment has been allowed in single-brand retail sector.
Besides, the conditions for FDI in construction of old- age homes and educational institutions have been eased.

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