As per the latest government data, foreign direct investment equity inflows into the country during the year 2017-18 have hit 5-year low at $44.85 billion.
The FDI inflow into the country holds importance as its decline casts an impact on the stability of the domestic unit rupee as well as proves fatal for the balance of payments.
In the year 2017-18, the foreign direct investment grew by 3% to $44.85 billion. Further in accordance with the data provided by the Department of Industrial Policy and Promotion (DIPP), foreign inflows in the country grew by 8.7 percent in 2016-17, 29.3 percent in 2015-16, 27.3 percent in 2014-15, and 11.3 percent in 2013-14.
The data is crucial as it thrown opens a picture to improve the ease of doing business in India and hence attract foreign investments. Simultaneously, there also stands the need to push domestic investments.
Also, another UNCTAD report, underlined the decrease in FDI from $44 billion in 2016 fiscal to $40 billion in 2017 and also at the same presented that during the period outflows more than doubled to $40 billion in 2017.
Nonethless, the sectors that received the highest foreign inflows include services, computer software and hardware, telecom, construction, automobile and power. Of this the major chunk of FDI into India has come in from Mauritius followed by Singapore, Netherlands, the US and Japan.