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India remains top destination for FDI
Why in the news ?
- According the RBI annual report, India remains a preferred destination for foreign direct investment (FDI) as domestic consumption remains strong.
Details
- With manufacturing sector gathering momentum, helped by both services and agriculture sectors, consumption demand remains robust in the country making it an attractive investment destination.
- India received $37.3 billion capital inflow in 2017-18 as compared with $36.3 billion in the previous fiscal. During the 2015-16, the country received $36.06 billion.
- Manufacturing activity is gathering momentum on the back of new business, both domestic and export orders, rising capacity utilisation and drawdown of inventories.
- In the services sector, the impulses of growth are broadening and expansion in employment conditions is generating anticipations of improvement in demand conditions.
- The increase in foreign capital flow was mainly due to higher flows into the communication services, retail and wholesale trade, financial services and computer services.
- In terms of sources, FDI inflows were concentrated mostly in Mauritius and Singapore that accounted for about 61 per cent of total equity investments.
Source
The Hindu.