Ministry of Commerce & Industry
FOREIGN DIRECT INVESTMENT
Posted On: 15 DEC 2021 6:22PM by PIB Delhi
During the last seven financial years, Foreign Direct Investment (FDI) inflows worth US$ 440.26 billion have been reported in India. FDI inflow in India stood at US$ 45.15 billion in 2014-2015 and has increased since then. The financial year wise details are as under:
S. No. | Financial Year | Amount of FDI inflows (in US$ billions) |
1. | 2014-15 | 45.15 |
2. | 2015-16 | 55.56 |
3. | 2016-17 | 60.22 |
4. | 2017-18 | 60.97 |
5. | 2018-19 | 62.00 |
6. | 2019-20 | 74.39 |
7. | 2020-21 | 81.97 |
To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein except for a few sectors, most sectors are open for 100% FDI under the Automatic route. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive & investor friendly destination. Changes are made in the policy after having consultations with stakeholders including apex industry chambers, Associations, representatives of industries/groups and other organizations. Government has recently undertaken a number of reforms across sectors. In the last one year alone, reforms in the FDI policy have been undertaken in sectors such as Insurance, Defence, Petroleum & Natural Gas, Telecom, etc.
Foreign Direct Investment inflows serve to augment domestic investments, promotes industrial development and employment generation across sectors and ancillary industries. Further, such investments bring international best practices and latest technologies which facilitate in skill development, export promotion and improvement of overall competitiveness of economy leading to overall economic growth and development in the country.
This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.
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As an expert in the field of Foreign Direct Investment (FDI) and economic policies, my comprehensive knowledge allows me to provide a nuanced understanding of the concepts discussed in the article dated December 15, 2021, from the Ministry of Commerce and Industry. I bring not only theoretical expertise but also a practical understanding gained through hands-on experience and continuous monitoring of global economic trends.
The article highlights the FDI inflows into India over the last seven financial years, indicating a steady increase from US$ 45.15 billion in 2014-2015 to US$ 81.97 billion in 2020-21. This upward trajectory reflects the success of the Indian government's efforts to attract foreign investments, making the country an increasingly favorable destination for international capital.
The crucial concept of an investor-friendly policy is underscored in the article. The Indian government has implemented policies allowing 100% FDI under the Automatic route for most sectors, with periodic reviews to ensure the country remains attractive and investor-friendly. This reflects a proactive approach, demonstrating a keen understanding of the importance of FDI in driving economic growth.
The government's engagement with stakeholders, including industry chambers, associations, and other organizations, signifies a commitment to incorporating diverse perspectives in policy formulation. The article specifically mentions recent reforms in sectors such as Insurance, Defence, Petroleum & Natural Gas, and Telecom, emphasizing the dynamic nature of FDI policies.
The stated objectives of FDI inflows, as outlined in the article, align with the broader economic goals of augmenting domestic investments, promoting industrial development, and generating employment across sectors. The emphasis on international best practices and advanced technologies brought in by foreign investments highlights the government's recognition of the broader benefits that FDI can bring, including skill development, export promotion, and enhanced competitiveness.
In conclusion, the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, has provided a comprehensive overview of India's FDI scenario. The data-driven insights, coupled with a clear articulation of the government's policies and their impact on economic development, reinforce the significance of FDI as a driving force behind India's overall growth and competitiveness on the global stage.
