India crosses USD 300 billion FDI milestone
Q. India has crossed which milestone between April 2000 and Sept 2016?- Published on 08 Dec 16
a. 300 billion FDI
b. 400 billion FDI
c. 300 billion GDP
d. 400 billion GDP
ANSWER: 300 billion FDI
India crossed the $300 billion foreign direct investment (FDI) milestone between April 2000 and September 2016.
- It has succeeded in firmly establishing its credentials as a safe investment destination in the world. Thirty-three per cent of the FDI came through the Mauritius route.
This is because the investors wanted to take advantage of India’s double taxation avoidance treaty with the island nation.
India received $101.76 billion from Mauritius
between April 2000 and September 2016.
The cumulative FDI inflows during the period amounted to $310.26 billion.
The inflows in the first half of the current financial year were $21.62 billion, according to data compiled by the Department of Industrial Policy and Promotion.
- The other big investors have been from Singapore, the US, UK and the Netherlands.
- According to the World Investment Report 2016, global FDI flows rose by 38 per cent to $1.76 trillion, the highest level since the global economic and financial crisis began in 2008.
About Indian economy FDI Flows
- Liberalisation of the FDI policy framework has benefitted India.
Major national development programmes that made India the destination for foreign funds include:
- Start Up India
- Stand Up India
- Make in India
- Digital India
- Skill India
- Besides increasing competitiveness, it has boosted investment.
- India last crossed the $300 billion mark at a time when the global economic slowdown has had a dampening impact on FDI flows.