Stable regulatory regime ensure higher FDI, says FM Goyal

Finance Minister Piyush Goyal on Friday said India has received massive foreign direct investment worth USD 239 billion in the last four and half years years on account of a stable and predictable regulatory regime.

Presenting the Interim Budget, Mr Goyal said last four and half years witnessed a rapid liberalisation of the FDI policy allowing most FDI to come through the "automatic route".

Finance Minister attributed predictable regulatory regime, a growing economy and strong fundamentals as the reason could attract massive amount of foreign direct investment during the last five years, as much as USD 239 billion worth received as FDI.He said The government has relaxed foreign investments norms in several sectors, including single-brand retail, defence, airlines and food processing. The main sectors that receive the maximum foreign inflows include services, computer software and hardware, telecommunications, trading, construction, automobile, and power.

Mr Goyal said the top sources of FDI include Mauritius, Singapore, Netherlands, the US and Japan. While several sectors attract foreign investments through the automatic approval route, certain segments need government approval.

He said FDI is important as India would require huge investments in the coming years to overhaul its infrastructure sector to boost growth.