Representative image (Photo Credit: PTI)
New Delhi: Foreign investments in the services sector increased 77.6 per cent to USD 7.55 billion in the first nine months of the current fiscal, helped by government steps to improve ease of doing business.
The sector, which includes banking, insurance, R&D, outsourcing, courier and technology testing, had received foreign direct investment (FDI) worth USD 4.25 billion during the April-December period of last fiscal, 2015-16, according to the Department of Industrial Policy and Promotion (DIPP).
The sector contributes over 60 per cent to India’s GDP and accounts for 17 per cent of total foreign investment inflows.
The other sectors where inflows have recorded growth during the nine month period of 2016-17 are: telecom (USD 5.54 billion), trading (USD 2 billion), computer software and hardware (USD 1.81 billion) and automobile (USD 1.45 billion).
In step FDI growth in important sectors like services, overall foreign inflows in the country increased 22 per cent to USD 35.84 billion during April-December 2016-17.
The Commerce and Industry Ministry is also considering relaxing FDI norms in certain sectors including retail to further boost inflows.
Foreign investment is considered crucial for India, which needs around USD 1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
A strong inflow of foreign investments will help improve the country’s balance of payments situation and strengthen the rupee against other global currencies, especially the US dollar.
Source: News18