Cumulative FDI touches $114.4 bn in 2015-17

Source: The Hitavada      Date: 04 Nov 2017 11:14:18


DUBAI,

Nov 3,

(PTI),

CUMULATIVE foreign direct investment (FDI) equity flows into India reached USD 114.4 billion during the last two financial years – 2015-16 and 2016-17, according to a latest report by global accounting firm KPMG. This is about 40 per cent higher than the USD 81.8 billion recorded in the preceding three years, from 2011-12 to 2013-14. UAE investors announced USD 2.5 billion worth of investments in India in a single month – October 2017 – including USD 1 billion investment by Abu Dhabi Investment Authority (ADIA), USD 1 billion by NRI-Emirati Investor’s Group and a further USD 462 million investment by Lulu Group in Andhra Pradesh.

The report was prepared for the first India-UAE Partnership Summit (IUPS) held here last week. Cumulative FDI into India reached USD 498.9 billion in 17 years from April, 2000 to June, 2017, according to the Depart-ment of Industrial Policy and Promotion (DIPP), Ministry of Commerce. “In the financial year 2016-17, the country received the highest-ever FDI flow worth USD 43.5 billion,” KPMG said. “India also witnessed an increase in private equity/venture capital investments led by its growing start-up segment. Between Jan and Sept, 2017, India received USD 17.6 billion of private equity/venture capital spread across 402 deals,” it said.

The report – released at the IUPS, organised by Business Leaders Forum (BLF) and commissioned by KPMG headed by Vikas Papriwal, Partner and Head of Markets, KPMG in Lower Gulf and Middle East South Asia – comes in the backdrop of latest announcement of USD 1 billion by the newly-formed NRI-Emirati Investors’ Group in addition to a further USD 1 billion by ADIA.

The Asian Development Bank said infrastructure sector in India required USD 5.2 trillion worth of investments to sustain the economic growth and lend support to several Government flagship programmes. “The infrastructure sector is one of the key drivers of the Indian economy. India’s infrastructure market, currently third-largest in Asia, is anticipated to reach USD 6.6 trillion by 2025, constituting 12.5 pc of the Asia- Pacific region,” said the report.