India drew $16 bn FDI in Q1, up 28%, data shows

Foreign direct investment into India grew by 28 per cent to USD 16.33 billion during the first quarter of the current fiscal, according to government data. 

Inflow of foreign direct investment (FDI) during April-June of 2018-19 stood at USD 12.75 billion. 

Sectors which attracted maximum foreign inflows during April-June 2019-20 include services (USD 2.8 billion), computer software and hardware (USD 2.24 billion), telecommunications (USD 4.22 billion), and trading (USD 1.13 billion), the commerce and industry ministry data showed. 

Singapore emerged as the largest source of FDI in India during the first quarter of the fiscal with USD 5.33 billion investments. It was followed by Mauritius (USD 4.67 billion), the US (USD 1.45 billion), the Netherlands (USD 1.35 billion), and Japan (USD 472 million). 

FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth. 

Recently, the government relaxed foreign investment norms in sectors such as -brand retail trading, coal mining and contract manufacturing.

Illustration: Dominic Xavier/Rediff.com.