FDI up by 6.5% to $2.05 billion in June

The Foreign direct investment (FDI) in the country increased by about 6.5% to $2.05 billion in June this year, according to official data.

In June 2014, the FDI stood at $1.92 billion.

However, in May this year the country had received $3.85 billion in FDI.

During April-June period of this fiscal, FDI in the country grew by 31% to $9.50 billion as compared to $7.23 billion in the same period last year, according to the data of the Department of Industrial Policy and Promotion (DIPP).

Among the top 10 sectors, computer software and hardware received the maximum FDI of $2.55 billion during the first quarter of this fiscal, followed by automobile ($1.09 billion), trading ($897 million), services ($636 million) and power ($271 million).

During the period, India received the maximum FDI from Singapore ($3.67 billion) followed by Mauritius ($2.08 billion), the Netherlands ($652 million) and the US ($627 million).

During financial year 2014-15, foreign fund inflows grew at 27% to $30.93 billion as against $24.29 billion in 2013-14.

The government has relaxed FDI norms in various sectors, including insurance, railways and medical devices to boost FDI in the country.

Foreign investments are considered crucial for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.

Growth in foreign investments helps improve the country s balance of payments (BoP) situation and strengthen the rupee.