According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflows in India in 2018-19 stood at US$ 44.37 billion, indicating that the government’s effort to improve ease of doing business and relaxation in FDI norms is yielding results.
Department for Promotion of Industry and Internal Trade (DPIIT), released the figures of Direct Foreign Investment (FDI) of the year 2018-19. Total FDI in India stood at US$44.37 billion during the year 2018-19.
The service sector is leading the FDI flow in the country with US$ 9.16 billion.Tweet
Most FDI flow comes from Singapore US$ 16.23 billion, followed by Mauritius (US$ 8.08 billion) and the Netherlands (US$ 3.87 billion).
FDI inflow in India in top 4 sectors
- Services sector: US$ 9.16 billion
- Computer software and hardware: US$ 6.42 billion
- Trading – US$ 4.46 billion
- Telecommunications: US$ 2.67 billion.
FDI equity inflows in India from Top 5 Countries
- Singapore (US$ 16.23 billion)
- Mauritius (US$ 8.08 billion)
- Netherlands (US$ 3.87 billion)
- USA (US$ 3.14 billion)
- Japan (US$ 2.97 billion)
Most recently, the total FDI equity inflows for March 2019 touched US$ 3.60 billion. The high figures contributed from a big deal In May 2018, Walmart acquired a 77 percent stake in Flipkart for a consideration of US$ 16 billion.
The government of India is also taking steps on a road map to achieve its goal of US$ 100 billion worth of FDI inflows.
The Foreign Direct Investment (FDI) in India allowed sectors –updated in 2018
- 100% Rail infrastructure under automatic route
- 100% FDI under automatic route has been permitted in SBRT.
- 100% under the automatic route for manufacturing of medical devices
- Insurance & Pension Sectors: increase the sectoral cap of FDI from 26% to 49%.
- Duty Free Shops: 100% FDI is now permitted under automatic route in Duty Free Shops located and operated in the Custom bonded areas.
- FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service raised to 100%, with FDI upto 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route.
- Broadcasting sector: Sectoral cap on Broadcasting sector has been raised across various activities as follows:
- 74% to 100% in Teleports, DTH, Cable Networks (Digital), Mobile TV, HITS49% to 100% for Cable Networks (not undertaking digitisation)26% to 49% for FM Radio, up-linking of news and current affairs
- 100% FDI in Satellites- establishment and operation and Credit Information Companies.
- 100% FDI under automatic route is now permitted in marketplace model of e-commerce.
- 100% FDI under government approval route has been permitted for trading, including through e-commerce, in respect food products manufactured and/or produced in India.
- 100% FDI in Asset Reconstruction Companies under the automatic route
- 74% FDI under automatic route has been permitted in brownfield pharmaceuticals. FDI beyond 74% is allowed through government approval route.
- 74% FDI limit for Private Security Agencies, up to 49% is permitted under automatic route in this sector and FDI beyond 49% and up to 74% is permitted with government approval.
- 100% FDI under automatic route ‘real-estate broking service’.
Government of India is creating space for the FDI to increase their stack in the different sector by allowing them more participation and make rules more flexible for FDI.