New Delhi: FDI inflows in the current fiscal year will top a 15.3 per cent rise in 2015-16 on the back of reforms and liberalisation of norms, Economic Affairs Secretary Shaktikanta Das said on Thursday.
Stating that the current account deficit at 1.1 per cent of GDP is a “robust macroeconomic indicator”, Mr Das said efforts will continue on the reforms front.
“Net FDI inflow rose by 15.3 per cent in 2015-16 over the previous year. Should be more this year due to full-year impact of FDI liberalisation in November 2015,” Mr Das tweeted.
For the full year, current account deficit stood at $22.1 billion, 1.1 per cent of GDP, as against $26.8 billion, 1.3 per cent in 2014-15.
Net FDI inflows during 2015-16 stood at $36 billion, up sharply by 15.3 per cent over 2014-15, according to Reserve Bank of India data.
In November, the government had unveiled sweeping liberalisation of foreign investment norms by relaxing FDI rules in 15 sectors, including civil aviation, banking, defence, retail and news broadcasting, and eased the process for FDI approval.
It has also raised the Foreign Investment Promotion Board’s power to clear FDI proposals to up to Rs 5,000 crore, from Rs 3,000 crore earlier.
Currently, 98 per cent of foreign direct investment comes into India through the automatic route, and the remaining through FIPB approval.