Foreign Investment in India Since 2000 is USD 307 Billion

Published By : 31 Jan 2014 | Published By : QYRESEARCH

According to the Indian Commerce and Industry Ministry, the country has received foreign investments to the tune of USD 306.88 billion. These investments have been a result of liberalization measures that were implemented to open up the Indian economy over two decades ago. Investments have been seen in various sectors including but not limited to: defense, retail, telecom, finance, oil and gas, infrastructure, technology and other sectors. 

According to these figures, foreign investment to the tune of USD 19.52 billion flowed in between 1999 to 2004. This figure went up to USD 114.55 billion between 2004 and 2009, and according to foreign investments recorded between 2009 and September 2013, the value was USD 172.82 billion.

FDI can put an economy on the growth track by aiding the establishment of new companies, and supplementing the skills and capabilities of existing companies. It also accentuates domestic capital, ultimately creating a multiplier effect on ancillary sectors as well. The Indian commerce and industry ministry said that the inflow of FDI has a favorable impact on the country’s current account balance.

Over the last ten years, the Indian government has changed and at times expanded sectoral caps as well as entry routes for foreign funds in various industrial sectors such as natural gas and petroleum, power exchange, asset reconstruction companies, the tea sector, credit information companies, defense, logistics services and so on.

The ministry further added that it carries out periodic reviews of its FDI policies so as to boost investor confidence and maintain a consistent inflow of FDI with a view to accelerate economic growth.
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