FDI FOREIGN DIRECT INVESTMENT IN INDIA IN VARIOUS SECTORS
In financial year 2014–15, India get most of its FDI from
Mauritius, Netherlands, Japan and United States
. On September 2014, Government of India
launched Make in India program in which policy avowal on 20 plus sectors were released with hassle-free norms
on each sector. The major sectors for Foreign Direct Investment are as follows
1. Infrastructure
12% of India's GDP is based on construction activity. Indian government has plans to invest $1 trillion on infrastructure from 2012–2017. 42% of this $1.02trillion is to be funded by private sector. 100% FDI under automatic route is allowable in construction sector for cities and townships.
2.Automotive
FDI in automotive sector was increased by 88% between April
2014 to February 2015. India is 7th biggest producer of vehicles in the world
with 17.6 million vehicles every year. 100% FDI is allowable in this sector via
automatic route. Automobiles shares 8% of the India's GDP.
3. Pharmaceuticals
Indian pharmaceutical market is 3rd biggest in terms of amount and 13th largest in terms of monetry. Indian pharma industry is expected to grow at 21% compound annual growth rate from 2016 to 2021. 100% FDI is allowable in this sector.
4. Service
FDI in service sector was increased by 47% in 2014–15. Service sector includes banking, insurance, outsourcing, R&D, courier and technology testing. FDI limit in insurance sector was raised from 27% to 47% in 2014.
5. Railways
100% FDI is allowed under regular route in most of area of railway like velocity train, railway electrification, passenger workstation etc.
6. Chemicals
Chemical industry of India earned revenue of $162 billion in 2013. 100% FDI is allowed in Chemical sector under usual route. Except few chemicals . India's share in global specialty chemical industry is expected to rise from 2.8% in 2013 to 7.2% in 2023.
7. Textile
Textile is one major supplier to India's export. Nearly 12% of India's total export is textile. This sector has attracted about $1648 million from April 2000 to May 2015. 100% FDI is allowed under regular route.
8. Airline
Foreign investment in a programmed or regional air transport
service or domestic planned passenger airline is permitted to 100,with FDI up
to 49.9% permitted under automatic route and beyond 49.9% through government.
