India one of the largest recipients of foreign direct investment in the world: Economic Survey
In the wake of the recent reform measures initiated by the government, India has become one of the largest recipients of foreign direct investment in the world, the Economic Survey for 2016-17 said today.
“FDI reform measures were implemented, allowing India to become one of the world’s largest recipients of foreign direct investment,” the document, which was tabled in Parliament today, said.
In the most recent year, it said FDI is running at an annual rate of USD 75 billion, which is not far short of the amounts that China was receiving at the height of its growth boom in the mid-2000s.
“During April-September 2016-17, FDI (foreign direct investment) equity inflows were $21.7 billion as compared to total FDI inflows of $16.6 billion during April-September 2015-16, showing 30.7 per cent surge,” the survey pointed out.
Besides, the survey highlighted that net foreign portfolio investments (FPI) turned negative for the first time since the meltdown of 2008, implying that there was an outflow from the Indian markets to the tune of Rs 23,079 crore.
According to the survey, the central government has liberalised and simplified the FDI policy in sectors like defence, railway infrastructure, construction and pharmaceuticals sectors.
“Many new initiatives have been taken up by the government to facilitate investment and ease of doing business in the country,” the survey said.
“Noteworthy among them are initiatives such as Make-in-India, Invest India, Start-Up India and e-biz Mission Mode Project under the National e-Governance Plan.”
The survey listed other measures to facilitate ‘Ease of Doing Business’, including online application for industrial licence and industrial entrepreneur memorandum through the eBiz website 24×7 for entrepreneurs.
“Simplification of application forms for industrial licence and industrial entrepreneur memorandum; limiting documents required for export and import to three by Directorate General of Foreign Trade,” the survey elaborated.
With agency inputs