India’s foreign direct investment (FDI) inflow is expected to rise further and reach $38 billion in the financial year 2017. This was said by a recently released report by Kotak Institutional Equities. The report said that the FDI growth is primarily because of emergence of some “positive signs” such as regulatory easing in select sectors and reform measures initiated by the government.
The net FDI inflow in 2015-16 was $36 billion and in 2014-15 it was $31 billion. So we can see a healthy growth of FDI infows in the country. The significant improvement in foreign direct investment (FDI) profile is a reflection of progressive policy reforms and the recent regulatory liberalisation in select sectors and the country is likely to see a net FDI flow of $38 billion this fiscal, provided some of the announcements made in recent times materialise, the report added.
Taiwanese electronic manufacturing services (EMS) gaint Foxconn had recently said that they would be investing $5 billion in the country in the next two to three years. Likewise, GE and Alstom signed a $5.9 billion worth of joint venture with Indian Railways, which will boost railway infrastructure. Moreover, there are a lot of Chinese smartphone players who are also investing in manufcaturing in India.
“Accordingly, we see upside to our base-case estimates of around 4.5 per cent growth in net FDI flows in fiscal year 2016-2017 ($38 billion) if some of the announcements made in recent times materialise,” Kotak Institutional Equities said.
By Atanu Kumar Das
