India received the maximum FDI inflows from Singapore in fiscal 2015-16 followed by Mauritius, USA, Netherlands and Japan, respectively US $ 13.69 billion, 8.35 billion, 4.19 billion, 2.64 billion and 2.61 billion, according to a report on Foreign Direct Investment in India jointly prepared by PHD Chamber of Commerce and Industry and KPMG.
The report which was collectively released at a Seminar on Foreign Direct Investment : Opportunities and Challenges under the aegis of PHD Chamber of Commerce and Industry by Joint Secretary, DIPP, Mr. Atul Chaturvedi; CMD, Indian Renewable Energy Development Agency Limited (IREDA), Mr. K S Popli; Sr. Vice President, PHD Chamber, Mr. Anil Khaitan; Deputy CEO, KPMG India, Mr. Akhil Bansal; Chairman, Foreign Trade & Investment Committee, PHD Chamber, Mr. Sanjay Aggarwal and Secretary General, PHD Chamber, Mr. Saurabh Sanyal.
The report highlights the recent liberalization in FDI policies & regulations, and advocates for continued efforts by government to sustain the current momentum.
The 2 year period from October 2014 – September 2016 has recorded a 60% increase in FDI equity inflows, a notable achievement.
Emphasizing on sector specific FDI inflows, the report suggests that on an average between 2000 and 2016 approximately 40% of FDI inflows has gone into services, telecom, construction and computer software and hardware with pharmaceuticals, chemicals and automobile sectors each receiving close to 5% of the country’s total FDI inflows.
The PHD Chamber internal analysis indicates that FDIs are related to ease of doing business in India and therefore, in its federal structure, an effective project monitoring group need to be activated in all States and UTs to encourage the bureaucracy to adopt a progressive approach towards investment proposals so that India sees multiplication in them.
It is also highlighted in the report that Maharashtra, Delhi, Haryana, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh together attracted more that 70% of total FDI inflows to India in the last 15 years.
Maharashtra received FDI amounting to US$9.5 billion during April 2015 – March 2016 against US$6.36 billion in between April 2014 – March 2015. During April 2000 and September 2016, the state received cumulative FDI totaling US$92.84 billion, constituting 30% of the country’s FDI.
According to the report, Delhi received FDI inflows to the tune of US$12,743 million during April 2015 – March 2016 against US$6,875 million in April 2014 – March 2015. From April 2000 to September 2016, the state received FDI totaling US$65,652 million, constituting 21% of the country’s FDI and the second highest among states.