FDI INCREASES BY A WHOPPING 74 PERCENT TO $2.21 BILLION
IN FEBRUARY
DATE: 19/04/2012
India's Foreign Direct Investment (FDI) has increased by a whopping 74% to $2.21 billion in February as compared to the same month last year. This has taken the total FDI for the period April- February 2011-12 to $24.8 billion, which is substantially higher than $19.42 billion in 2010-11, and $25.83 billion in 2009-10.
Services sector received the largest share of $5.05 billion followed by pharmaceuticals $3.21 billion and telecom $1.99 billion. The other major beneficiaries were construction $2.52 billion, power $1.61 billion and metallurgical industries $1.76 billion.
Experts are of the opinion that there is even more scope to increase the FDI if the government goes through its economic reforms of allowing 100% FDI in sectors like multi-brand retail and insurance. They are of the opinion that $2 billion is not a large amount and India can do much better.
Mauritius remained the top source of inflows with investments of $9.42 billion, thanks to the double taxation avoidance treaty. Other sources were Singapore ($5.07 billion), Japan ($2.86 billion), UK ($2.75 billion), Germany ($1.54 billion), Netherlands ($1.21 billion) and Cyprus ($1.42 billion).
Recently, the government has rationalized the procedure to enhance foreign investment into the country and also allowed FIIs to invest up to 23% in commodity exchanges without seeking its prior approval.
Services sector received the largest share of $5.05 billion followed by pharmaceuticals $3.21 billion and telecom $1.99 billion. The other major beneficiaries were construction $2.52 billion, power $1.61 billion and metallurgical industries $1.76 billion.
Experts are of the opinion that there is even more scope to increase the FDI if the government goes through its economic reforms of allowing 100% FDI in sectors like multi-brand retail and insurance. They are of the opinion that $2 billion is not a large amount and India can do much better.
Mauritius remained the top source of inflows with investments of $9.42 billion, thanks to the double taxation avoidance treaty. Other sources were Singapore ($5.07 billion), Japan ($2.86 billion), UK ($2.75 billion), Germany ($1.54 billion), Netherlands ($1.21 billion) and Cyprus ($1.42 billion).
Recently, the government has rationalized the procedure to enhance foreign investment into the country and also allowed FIIs to invest up to 23% in commodity exchanges without seeking its prior approval.
POWERED BY: COMMODITY INSIGHTS
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