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New Delhi, Nov 23: Foreign direct investments coming to India declined by about 16 per cent to USD 2.45 billion in September, registering a fall for the second month in a row. The inflows had declined by about 10 per cent to USD 1.27 billion in August. In September last year, the country had received foreign direct investments (FDI) worth USD 2.91 billion. Also Read - Boost to India's Air Power: 3 More Rafale Fighter Jets to Arrive in Ambala on November 5
Foreign investments showed a growth of 15 per cent to USD 14.47 billion during April-September period of this fiscal, as compared to USD 12.59 in the same period last year, according to the latest data of the Department of Industrial Policy and Promotion. Healthy inflows in May (USD 3.60 billion) and July (USD 3.50 billion) have helped in registering a positive growth during the first half of the current fiscal. Also Read - India-US 2+2 Dialogue: Landmark Defence Pact BECA Signed, Pompeo Calls China a 'Threat' to Regional Security | Key Points
Amongst the top 10 sectors, telecom received the maximum FDI of USD 2.46 billion in the six months, followed by services (USD 1.22 billion), pharmaceuticals (USD 1.09 billion) and automobile (USD 1.03 billion). During the period, India received maximum FDI from Mauritius at USD 4.19 billion, followed by Singapore (USD 2.41 billion), the Netherlands (USD 1.97 billion), the US (USD 1.19 billion), Japan (USD 937 million) and UK (USD 842 million). In 2013-14, FDI inflows were USD 24.29 billion as against USD 22.42 billion in 2012-13.
Decline in foreign investments could put pressure on the country?s balance of payments and may also impact the value of the rupee.
The Indian rupee on Friday ended at 61.31 against the US dollar. India requires around USD 1 trillion in the next five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth.
The government is taking several steps to boost FDI. It has raised the foreign investment limit to 49 per cent in defence manufacturing and relaxed the policy in construction sector. The government has also proposed to increase the FDI cap in insurance to 49 per cent