FDI inflows in 2016-17 to be higher than 15.3% in 2015-16: Economic Affairs Secretary Shaktikanta Das

NEW DELHI: FDI inflows in the current fiscal will top 15.3 per cent rise in 2015-16 on the back of reforms and liberalisation of FDI norms, Economic Affairs Secretary Shaktikanta Das said today.

Stating that the current account deficit (CAD) at 1.1 per cent of GDP is a "robust macro economic indicator", 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," Das tweeted.

For the full year, CAD stood at $22.1 billion (1.1 per cent of GDP) as against $26.9 billion (1.8 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 RBI 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 FIPB'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.