Singapore continues to be top source of FDI; Maha garners highest share of FDI at 29%.
Foreign direct investment (FDI) inflows dipped 1.44% on year to $10.67 billion in the October-December period of FY20, official data released Tuesday showed. FDI inflows were $10.82 billion in the quarter ended December 31, FY19.
However, overseas investments increased 9.39% on a sequential basis from $9.76 billion in the July-September quarter. Similarly, in the April-December period, FDI rose 10% on year to $36.76 billion, Department for Promotion of Industry and Internal Trade (DPIIT) data showed.
Singapore continued to be the top source of FDI, accounting for $11.65 billion followed by Mauritius ($7.45 billion), the Netherlands ($3.53 billion), Japan ($2.8 billion) and the US ($2.79 billion).
The sectors that attracted maximum inflows during the period include services ($6.52 billion), computer software and hardware ($6.35 billion), telecommunications ($4.29 billion), automobile ($2.50 billion) and trading ($3.52 billion).
Maharashtra garnered the highest share of FDI at 29% with investments clocking $3.13 billion. Delhi and Karnataka followed with 23% and 22% share, respectively.
In the third quarter, December saw the highest inflow of $4.65 billion and November the least at $2.8 billion.
The government had last year relaxed foreign investment norms in sectors such as brand retail trading, coal mining and contract manufacturing.
Recently, the department clarified that goods procured from units in special economic zones (SEZ) by single brand retailers, owned by foreign companies, would qualify for meeting the mandatory 30% local sourcing norms. It also notified the government’s decision to allow 100% FDI in insurance intermediaries.
