26.9 C
New Delhi
Friday 18 October 2019
Economy FDI equity inflows to service sector grew by 15%:...

FDI equity inflows to service sector grew by 15%: Economic Survey

-

- Advertisment -

New Delhi: FDI equity inflows to the services sector grew by 15.0% during 2017-18 (April-October). It has been possible because the Union government has reformed the systems and structures a lot to ensure that India remains an increasingly attractive investment destination. These measures include the announcement of the National Intellectual Property Rights (IPR) policy, implementation of GST, reforms for ease of doing business, the Economic Survey has noted.

The survey points out that the scale of reforms can be gauged from the fact that 25 sectors including services activities and covering 100 areas of FDI policy have undergone reforms over the past one year. FDI policy provisions were radically overhauled across sectors such as construction development, broadcasting, retail trading, air transport, insurance and pension.

At present, more than 90% of FDI inflows are through the automatic route. After the successful implementation of the e-filing and online processing of FDI application by the Foreign Investment Promotion Board (FIPB), the government announced the phasing out of the FIPB in the Union Budget 2017-18.

On 10 January, the Cabinet approved the amendments in FDI policy allowing 100% FDI under the automatic route for single-brand retail trading. Foreign airlines also have been allowed to invest up to 49% in Air India, the survey adds.

The survey further states that, though there is ambiguity in the classification of FDI in services, it is the combined FDI share of the top 10 service sectors such as financial and non-financial services falling under the Department of Industrial Policy & Promotion (DIPP)’s service sector definition — as well as telecommunications, trading, computer hardware and software, construction, hotels and tourism, hospital and diagnostic centres, consultancy services, sea transport, and information and broadcasting that can be taken as the best estimate of services FDI.

However, these could include some non-service elements. The share of these services is 56.6% of the cumulative FDI equity inflows during the period April 2000-October 2017 and 65.8% of FDI equity inflows during 2017-18 (April-October).

If the shares of another five services or service related sectors like retail trading, agriculture services, education, book, printing and air transport are included, the total share of FDI equity inflows to the services sector would increase to 58.5% and 69.6% respectively for the above two periods.

In 2016-17, FDI equity inflows to the services sector (top 10 sectors including construction) had declined by 0.9% to US$ 26.4 billion, though the overall FDI equity inflows grew by 8.7%. However, during 2017-18 (April-October), the FDI equity inflows to the service sector grew by 15.0% as compared to 0.8% growth in total FDI equity inflows mainly due to higher FDI in two sectors: telecommunications and computer software and hardware.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions

Omega-3: Study published in BMJ claiming no benefit for type 2 diabetes has myopic vision

Most respondents in the omega-3 study published in the BMJ are from Europe and North America; such results can hardly be applied worldwide
- Advertisement -

Elsewhere

Pakistan-sponsored terrorists now sneaking into India are Afghan, Pashtun

A meeting attended by heads of Pakistan Army, ISI and terror outfits was held in Khyber Pakhtunkhwa of Pakistan where the plot was hatched

Manmohan Singh, is this your dissent or self-goal?

While the Congress is opposed to Veer Savarkar, Manmohan Singh tried today to not let the BJP take all the credit for recognising the freedom fighter

Pakistani F-16s chased Indian passenger plane in September

Two Pakistani F-16 aircraft tried to stop a SpiceJet aircraft on its way to Kabul carrying 120 passengers mid-air on 23 September

पाकिस्तान के साथ क्रिकेट संबंधों पर बोले सौरभ — मोदी, ख़ान तय करें

'पाकिस्तान के साथ खेलने के लिए हमें अनुमति लेनी होगी; अंतर्राष्ट्रीय दौरे सरकारों की अनुमति से होते हैं; हमारे पास इस सवाल का जवाब नहीं है'

Malaysia wants to import more from India after adverse comment on Kashmir

Mahathir Mohamad has always been supportive of Pakistan; India-Malaysia relations had improved after he was out of power in 2003

You might also likeRELATED
Recommended to you

%d bloggers like this: