FDI in the country grew by 7 percent during Q1, 2016: DIPP

Q.  Foreign direct investment in the country grew by what percent to USD 10.55 billion during Q1, 2016?
- Published on 01 Aug 16

a. 6
b. 7
c. 8
d. 9

ANSWER: 7
 
FDI in India grew by 7 percent to USD 10.55 billion during Q1 of 2016-2017. Foreign investment inflows were at USD 9.88 billion in January-March 2015 according to Department of Industrial Policy and Promotion.
  • Sectors which attracted maximum FDI during this period included computer hardware and software, services, telecommunications, power, pharmaceuticals and trading business.
  • In terms of nations, India received the maximum overseas inflows from the US, Singapore, Japan, Mauritius and the Netherlands.
  • Further liberalisation of the foreign investment policies for services sector in the budget means more inflows will come.
  • Government has recently relaxed FDI norms in 8 sectors namely defence, civil aviation, food processing, private security agencies and pharmaceuticals.
  • Foreign investment is critical for India which needs USD 1 trillion for overhauling infrastructure such as ports, airports and highways for boosting growth.
  • Strong inflow of foreign investments will help improve the country‚Äôs BOP situation and strengthen the rupee value against other global currencies including the US dollar.

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