The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley showed that foreign equity inflows during the first six months of 2016-17 fiscal grew by 30.72 per cent.
“During April-September 2016-17, FDI (foreign direct investment) equity inflows were $21.7 billion as compared to total FDI inflows of $16.6 billion during April-September 2015-16, showing 30.7 per cent surge,” the survey pointed out.
“Sectors like services sector, construction development, computer software and hardware and telecommunications have attracted highest FDI equity inflows.”
However, the survey showed that the upward momentum of the Indian markets peaked around September 2016 and lost steam thereafter, particularly in the wake of foreign capital outflow from emerging markets.
Besides, the survey highlighted that net foreign portfolio investments (FPI) turned negative for the first time since the meltdown of 2008, implying that there was an outflow from the Indian markets to the tune of Rs 23,079 crore.
According to the survey,the central government has liberalised and simplified the FDI policy in sectors like defence, railway infrastructure, construction and pharmaceuticals sectors.
“Many new initiatives have been taken up by the government to facilitate investment and ease of doing business in the country,” the survey said.
“Noteworthy among them are initiatives such as Make-in-India, Invest India, Start Up India and e-biz Mission Mode Project under the National e-Governance Plan.”
The survey listed other measures to facilitate ‘Ease of Doing Business’, including online application for industrial licence and industrial entrepreneur memorandum through the eBiz website 24×7 for entrepreneurs.
“Simplification of application forms for industrial licence and industrial entrepreneur memorandum; limiting documents required for export and import to three by Directorate General of Foreign Trade,” the survey elaborated.
“Setting up of investor facilitation cell under Invest India to guide, assist and handhold investors during the entire life-cycle of the business.”