- Friday, April 26, 2024
By: Shubham Ghosh
INDIA attracted foreign direct investment (FDI) inflows of $22.53 billion in the first three months of the FY2021 which is 90 per cent more than that recorded in the same period last year, the Narendra Modi government has said.
According to a report by Reuters, the Indian trade ministry said in a statement that the country’s automobile industry accounted for 27 per cent of the total FDI equity flow to emerge as the brightest sector in the economy. Computer software and hardware and the services sector were in the second and third spots with contributions of 17 and 11 per cent, respectively.
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“Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country,” the statement added.
The Modi government has slashed corporate taxes to woo manufacturers and revive private investment besides introducing new farm laws and passing labour reforms to make hiring and firing easy.
According to data from the National Securities Depository Limited, foreign portfolio investors (FPI) have made a net investment of Rs 50.01 billion ($682 million) so far in the month of August in Indian equities, the Financial Express said in a report.
The FPIs made a comeback after a net outflow of Rs 113.08 billion ($1.5 billion) in July. Following the investments in August, the net FPI investment in the equities segment in 2021 stood at Rs 540.37 billion ($7.3 billion).
Shrikant Chouhan, executive vice president, Equity Technical Research at Kotak Securities said, “FPIs have been net buyers in Indian equities in Aug 2021 till date. FPI flows are expected to be volatile, given FOMC meeting minutes suggesting increased tapering likelihood.”
“Tapering is expected to have a substantial impact on global equity markets,” he added.
