Reserve Bank Governor Raghuram Rajan on Monday warned against compromising India's interest for the sake of attracting foreign investment and said the priority should be framing transparent policies as well as resolving contractual tax disputes quickly.
After declining for two months in a row, foreign direct investment (FDI) in India grew by 8 per cent year-on-year to $2.15 billion in January.
At a time when the world economy is facing the worst credit freeze in several decades, India attracted $2.7-billion FDI in January, up 58.8 per cent from a year ago, and remained a favourite destination for cross-border investments.
UNCTAD on Wednesday placed India among the top four Asian FDI destinations and said it will get more foreign investment flows as global economy rebounds this year.
In January 2014, the country had received $2.18 billion FDI.
The UN Conference on Trade and Development study -- World Investment Report 2010 -- ranks India as the 9th most attractive destination for foreign direct investment, up from 13th last year. It received $35 billion in FDI in 2009.
Foreign direct investment (FDI) in India declined sharply for the second month in a row in Maywith inflows slipping to $1.32 billion from $4.66 billion in the year-ago period, reflecting the impact of slowing global economy.
There is unlikely to be a rush towards the country unless New Delhi is ready with fairly applied regulations.
A potential risk to the rupee's appreciation trajectory lies in the event of a delay in the Federal Reserve's rate cut cycle, particularly if core inflation in the US remains elevated.
India is now a biz friendly nations, say Arun Jaitley.
Global funds, according to Christopher Wood, global head of equity strategy at Jefferies, are now beginning to pay more attention to India with the market now offering 30 companies with a market capitalisation over $25 billion.
Big ticket investments by Vodafone and Matsushita Electric lifted FDI inflows in the first half of this fiscal to $7.2 billion, a 65 per cent rise from the year-ago period. India retained its position as the second most preferred destination for global investors as measured by the AT Kearney FDI Confidenx Index, 2007.
India received $2.21 billion in foreign direct investment in February, showing an annual growth of 74 per cent, taking cumulative inflows to $28.40 billion for the April-February period of the last fiscal.
India will soon become a favourite destination for foreign investors and will be able to double the foreign direct investment that presently stood at about $4.4 billion, according to one of the architects of the country's financial policies.
Billionaire Mukesh Ambani's Reliance Retail on Thursday told the government that complex legal structures have been used by some firms to bypass the country's e-commerce rules which from the very beginning do not allow foreign capital in the inventory-based model. At a meeting called by the commerce ministry on allegations that foreign online retailers created complex structures to bypass foreign investment rules and damage small traders, Amazon urged the government not to issue any clarification until investigations into its business practices had been concluded, sources said. At the meeting, Reliance Retail's representatives said the Indian e-commerce policy does not allow foreign capital in the inventory-based model and foreign investment is allowed only in pure technical infrastructure/ platform that facilitates the meeting of buyer with sellers.
At present, global retail firms can invest up to 51 per cent in India and need a local joint venture partner.
India received Rs 14232.42 crore (Rs 142.32 billion) worth of foreign direct investment in the first nine months of the current fiscal as opposed to Rs 12117.36 crore (Rs 121.17 billion) FDI received in the whole of 2003-04 fiscal.
India can become a $6.7 trillion economy by 2031, from $3.4 trillion currently, if the country clocks an average growth of 6.7 per cent for 7 years, an S&P Global report said on Thursday. India had clocked a 7.2 per cent GDP growth in 2022-23 fiscal. But a global slowdown and lagged effect of a policy rate hike by RBI could slow down growth to 6 per cent in the current fiscal, S&P Global said in a report titled 'Look Forward: India's Money'.
Foreign direct investment (FDI) into India saw a whopping 310 per cent increase in June to $5.65 billion, the highest monthly inflow in the last 11 financial years, indicating the revival of investor confidence in the Indian economy.
Undeterred by global credit freeze, India maintains a bullish outlook on attracting foreign direct investment which may be governed by easier rules, a top government official said.
Buoyed by favourable policies, India has emerged as the fourth largest destination in Asia for foreign direct investment, attracting over Rs 20,000 crore (Rs 200 billion) within the first six months of the current fiscal year.
Gadkari said, infrastructure sector including highways, airports, inland waterways, railways, logistic parks, broad gauge and metro, apart from MSMEs can attract large scale foreign investment.
A Department of Industrial Policy and Promotion fact sheet mentioned India's top 10 FDI generating countries.
India's plans to relax foreign direct investment (FDI) rules across a broad spectrum of industries have received the final approval from the Cabinet Committee of Economic Affairs (CCEA).
India's commerce and industry minister Anand Sharma said that from 2012 the country would be able to attract 50 billion dollars annually.
The exports in 2022-2023 was $79 billion, compared to imports of $50 billion.
India may allow selective foreign direct investment from Pakistan, if the political situation in the neighbouring country improves. At the moment, both the countries do not allow FDI flows between each other.
India, the US and 12 other members of the IPEF grouping have signed a supply chain resilience agreement that would help mitigate risks of economic disruptions from supply chain shocks and improve crisis coordination. The agreement would help member countries like India to reduce their dependence on China and provide timely information to the IPEF member countries about potential supply disruptions. The COVID outbreak severely disrupted the global supply chain, as most countries were dependent on China for various products like pharma raw materials.
India was fourth in 2008, in terms of FDI inflows, among developing countries, he said referring to UNCTAD World Investment Report (WIR) 2009.
According to sources, there is a proposal to allow 100 per cent Foreign Direct Investment in single brand retail sector "through automatic route" with certain conditions.
The 10-nation regional block of Association of South East Asian Nation (ASEAN), and not China and India, is the leading destination of America's foreign direct investment, a top US trade official said Monday.
The outward Foreign Direct Investment flows from India, particularly in manufacturing and Information Technology services, have increased since late 1990s even though country's firms were investing abroad for many years, a new UN report has said.
Union Finance Minister Nirmala Sitharaman, along with her team of bureaucrats, delved into the fine print of the 2024-25 Budget documents in a press conference, detailing the government's road map on bringing down the debt-to-GDP ratio and bold tax measures.
The talks for a free trade agreement (FTA) between India and Canada may have taken a pause but will resume once the political row between the two countries is resolved as the pact has economic benefits for both the nations, trade experts and exporters said on Friday. However, they said that India may not hurry for the trade agreement as 60 per cent of New Delhi's exports are already entering Canada at zero duty. Earlier this month, India and Canada paused the negotiations for the agreement due to political reasons.
The overall FDI policy landscape is changing and can do so faster, says
The government also increased the power of the FIPB.
India received a record foreign direct investment of $3.75 billion (Rs 17,266.52 crore) during the calender year 2004, government said on Wednesday.
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