14 December, New Delhi
The Foreign Direct Investment, FDI inflows into the services sector grew by about 20 per cent to 1.46 billion dollars in the first six months of the current fiscal.
According to the data of Department of Industrial Policy and Promotion, the services sector, which includes banking, insurance, outsourcing, Research and Development, courier and technology testing, had received FDI worth 1.22 billion dollars in the same period last fiscal.
According to experts, measures announced by the government are helping these sectors attract more investments.
Earlier this year, the government hiked the FDI cap in insurance sector to 49 per cent. In banking sector also, the government has eased the norms and permitted portfolio investors to buy up to 74 per cent stake in local private banks with full fungibility.
Other sectors which have attracted healthy foreign inflows during the first half of this fiscal include computer software and hardware which amounts to 3.05 billion dollars, trading 2.3 billion and automobile 1.46 billion. Strong inflows in these sectors propelled the overall FDI into the country by 13 per cent to 16.63 billion dollars during April-September 2015.
The government has announced a series of steps like fixing timeliness for approvals to improve the ease of doing business in the country. The services sector contributes about 60 per cent to India’s GDP and receives high foreign inflows.