DPIIT: FDI inflows rose 15% to $26 Bn in 1st half of FY2020; Singapore largest FDI source of India

On January 2, 2020, According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the Foreign Direct Investment (FDI) in India rose 15% to $26 billion in the first half of FY2020 (Fiscal year 2020). Singapore continued to be the largest source of FDI in India during the first half of FY2020 with $8 billion investments. The inflow of FDI during April-September of 2018-19 stood at $22.66 billion. The data in brief are as follows:DPIIT data:

i.Other top FDI sourcing countries to India: Singapore was followed by Mauritius ($6.36 billion), the United States(US) ($2.15 billion), the Netherlands ($2.32 billion), and Japan ($1.78 billion) in the 2nd, 3rd, 4th and 5th place respectively.

ii.Some of the sectors that attracted maximum foreign inflows during April-September 2019-20 include

• Services at $4.45 billion
• Computer software and hardware at $4 billion
• Telecommunications at $4.28 billion
• Automobile at $2.13 billion and
• Trading at $2.14 billion.

Foreign Direct Investment:
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

• India gets FDI through 2 routes. They are automatic route and government route.
• The govt. has revised it norms on FDI. It includes permit of 100% FDI under automatic route for sale of coal, for coal mining activities including associated processing infrastructure.
• The government has allowed 100% FDI through the automatic route for contract manufacturing.
• 26% FDI under government route has been permitted for uploading/ streaming of news & current affairs through digital media, on the lines of print media.

Rank:

About Department for Promotion of Industry and Internal Trade (DPIIT):
Fact- In January 27, 2019 the Department of Industrial Policy & Promotion(DIPP) was renamed to Department for Promotion of Industry and Internal Trade after internal trade was added to its mandate.
Headquarters- New Delhi.
Founded- 1995.