India’s FDI doubles and China sees slump

India needs $1 trillion to boost sectors like highways, airports and infrastructure

GN Bureau | March 18, 2015


#fdi   #foreign direct investments   #india   #china   #airports   #infrastructure  

As India eases FDI (foreign direct investment) norms the FDI has more than doubled to $4.48 billion in January, the highest inflow in last 29 months. Compare this to China and India seems to have done reasonably well. February FDI rose just 0.9 percent from a year earlier, in China.

India is estimated to require around $1 trillion over five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth.

Government is taking steps and has relaxed FDI norms in sectors including insurance, railways and medical devices.

In January 2014, India had received $2.18 billion in FDI. It was in September 2012 that India had attracted FDI that was worth $4.67 billion.

During the April-January period of the current fiscal, the foreign inflows have grown by 36 per cent, year-on-year, to USD 25.52 billion, according to data from Department of Industrial Policy and Promotion (DIPP).

Amongst the top 10 sectors, telecom received the maximum FDI of $2.83 billion in the 10-month period, followed by services ($2.64 billion), automobiles ($2.04 billion), computer software and hardware ($1.30 billion) and pharmaceuticals ($1.25 billion).

During the period (April-January), India received the maximum FDI from Mauritius at $7.66 billion, followed by Singapore ($5.26 billion), the Netherlands ($3.13 billion), Japan ($1.61 billion) and the US ($1.58 billion).

Healthy inflow of foreign investments into the country helped India’s balance of payments (BoP) situation and stabilised the value of rupee.

Meanwhile, FDI in China grew at its weakest pace in six months in February, but analysts caution that seasonality may explain the swings even as a weakening economy continues to dent investor confidence.

February FDI rose just 0.9 percent from a year earlier, slowing sharply from a 29.4 percent jump in January, adding to mostly weak February data, which has raised expectations of further policy steps from Beijing to spur growth.

February FDI of $8.6 billion was down 38 percent from $13.9 billion in January.

Analysts, however, caution not to read too much into the weak February FDI numbers as seasonality could cause swings. China's Lunar New Year holiday, which causes strong seasonal distortions, began on Jan. 31 last year but started on Feb. 19 this year.

Investment from the United States fell 31.8 percent from a year earlier, while that from Japan slumped 15.9 percent.

Comments

 

Other News

Battle over cattle, Delhi govt schools lead the way and, why we must return to Gandhi & Tagore

On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati

BEML unveils 9 MW capacity windmill park

  BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption.   In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently

BHEL registers increase in intellectual capital

  Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights

NALCO partners with CII, Odisha for outreach programmes on GST

  National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation.   Series of interactive programmes are being

EPFO inks MoU with HUDCO for Housing for All by 2022

  Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to

IndianOil LPG import terminal to reduce refill backlog in Kerala

IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo



Video

पाकिस्तानी सेना कैमरे में कैद करना चाहती थी ये हमला

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter