Indian Sectors Attracting Highest FDI Inflows

Abstract:

Indian Sectors Attracting Highest FDI Inflows are service, chemicals, food processing and telecommunications. FDI inflows to different sectors in India have increased over the years.

Foreign direct investment in India:

Foreign direct investment can increase the economic growth of a country and the government of India realized this fact and this is the reason that it started a series of financial and economic reforms in the country in 1991.

In 2003, the Indian government started the second generation reforms in order to increase the flow of foreign direct investment in the country which in turn, helped to integrate the country's economy with the economy of the world.

Sectors in India that are attracting the highest amount of FDI:

Indian Sectors Attracting Highest FDI Inflows are many such as, electrical equipments, transportation industries, telecommunication, fuels, food processing industries, and services. Further the Indian Sectors Attracting Highest FDI Inflows are cement and gypsum products, metallurgical industries, chemicals, and drugs and pharmaceuticals.

Amount of foreign direct investment in the major sectors of India from August, 1991 to September, 2005:

• The amount of foreign direct investment in the sector of electrical equipments was US$ 4,266 million
• Foreign direct investment in the sector of transportation industry was US$ 3,070 million
• FDI in the service sector was US$ 2,840 million
• The amount of foreign direct investment in the sector of telecommunications stood at US$ 2,730 million
• The amount of foreign direct investment in the sector of fuels that included oil refinery and power came to US$ 2,505 million
• Foreign direct investment in the sector of chemicals was US$ 1,818 million
• The amount of foreign direct investment in the sector of food processing industries came to US$ 1,172 million
• FDI to drugs and pharmaceuticals was US$ 936 million
• The amount of foreign direct investment in the sector of cement and gypsum products came to US$ 715 million
• Foreign direct investment in the sector of metallurgical industries was US$ 544 million

Various countries investing in India are:

• Japan
• USA
• UK
• Singapore
• Switzerland
• France
• Mauritius
• Netherlands
• South Korea
• Germany

Last Updated on 05/07/2011