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

Urban Blind Spot: Animals, governance, and the cost of ignoring coexistence

India’s cities are expanding at an unprecedented pace, absorbing people, infrastructure, and economic activity at scale. What urban governance frameworks have been slower to absorb is a reality already playing out on the ground: animals are an inseparable part of urban life. From community dogs and p

How India uses AI in the field of culture and languages

* India is institutionalising AI for culture and languages through national platforms such as BHASHINI, Anuvadini, Gyan Bharatam and Adi Vaani etc. * AI is being used to make cultural and knowledge assets usable by digitisation of manuscripts, translation of academic content, and in

India improves position on Network Readiness Index

India has improved its position by four slots and is now placed at 45th rank in the Network Readiness Index 2025 (NRI 2025) report prepared by Portulans Institute, Washington DC.   The report, released on February 4, maps the network-based readiness landscape of 127 economies based on th

Framework for India-US Interim Agreement announced

India and the United States on Saturday announced they had agreed on an interim framework for an interim trade agreement, indicating a broad roadmap of the opening of the markets and reduction in trade tariffs on both sides. In a message on X, prime minister Narendra Modi said, “Great

India’s quiet rise as the world’s `Third Pole`

A silent re-calibration is going on in the international system, which is becoming more polarized, volatile, and entered of spheres of influence. The world does not evolve in the new era of bipolar competition of the United States and China, nor does it evolve on the setback of Russia in the role of a spoi

‘Tariff king’ to trade partner: Why Trump’s sudden U-turn surprises India

On February 2 at around 10 PM, Sergio Gor, who had become US ambassador to India just three weeks ago, posted a cryptic message on his official handle on X, stating, “President Trump just spoke with Prime Minister Modi. STAY TUNED….” This created a buzz across media in India as the two l


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter