According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Foreign Direct Investment (FDI) in the services sector grew at 36.5% amounting to $9.15 billion in 2018-19. The services sector comprises of finance, banking, insurance, outsourcing, R&D, courier, tech testing and analysis.
- In 2017-18, FDI of service sector was $6.7 billion.
- FDI inflows contributes over 60% to the Gross Domestic Product(GDP).
- Between April 2000 and March 2019, service sector accounted for 18% of FDI in India.
- Other sectors which recorded healthy growth in FDI inflows are computer software and hardware, trading, automobile industry, and chemicals.
- For the first time in the last six years in 2018-19, the overall FDI inflows reduced at 1% to $44.37 billion as foreign investments declined in telecommunication and pharmaceutical sectors.
- FDI in Chemical sector also declined in 2017-18 resulting in $1.30 billion investment as compared to $1.39 billion in 2016-17.
♦ Parent Organization: Ministry of Commerce and Industry
♦ Minister In charge: Piyush Goyal