India has received $306.88 billion foreign investments since 2000 on the back of liberalisation in overseas investment norms for various sectors, including telecom, retail, defence, fiance and oil and gas, government data showed Wednesday.
“Between 1999-2004, India received $19.52 billion of foreign investment which increased to $114.55 billion between 2004-09, and increased further to $172.82 billion between 2009 to September 2013,” the commerce and industry ministry said in a statement.
The foreign direct investment (FDI) inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies, including in the aviation sector, as well as through establishment of new companies, it said.
“It has indirect multiplier effect on other related sectors also, and thereby stimulates economic growth. FDI inflows also have a positive impact on the current account balance,” the ministry added.
In the past one decade the government has amended the sectoral caps and and entry routes for overseas funds in several sectors like petroleum and natural gas; commodity exchanges; power exchanges; stock exchanges, depositories and clearing corporations; asset reconstruction companies; credit information companies; tea sector including tea plantations; single brand product retail trading; test marketing; telecom services; courier services and defence.
“The review of FDI policy is done with a view to boost investor confidence, thereby stimulating FDI inflows and contributing to accelerated economic growth,” the ministry said.