“Our thematic approach has seen consistent results and we continue to believe in our structural themes of IT, digital, pharmaceuticals, consumer staples, rural, chemicals, and automobiles,” Neeraj Chadawar, Quantitative Equity Research at Axis Securities
Watch this edition of 3-Point Analysis to know more about key reasons for India's strong FDI inflows
The ministry said that the total FDI, which includes reinvested earnings, grew by 13 percent to $35.73 billion.
As per the new policy, FDI investments into Indian companies from the neighbouring countries will require a nod from the government.
Giving details of the total foreign direct investment (FDI) inflow from Chinese companies in India, Minister of State for Finance Anurag Singh Thakur said, it was $350.22 million in 2017-18, while it declined to $229 million in the following year.
As per a report by ICICI Securities, FPI equity inflows in August 2020 so far stand at nearly $6 billion, which is close to the highest monthly number in history.
Kant further said that almost 90 percent plus of the $22 billion foreign direct investment in India during the pandemic came through the automatic route.
NITI Aayog CEO Amitabh Kant on August 6 said the government will soon issue a clarification regarding beneficial ownership on FDI from neighbouring countries
Housing and Urban Affairs Ministry Secretary Durga Shanker Mishra said a memoranda of agreement will be signed with states within a month
According to the Press Note 3 of 2020, 'an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route', it added.
The Road Transport, Highways and MSME minister also said that talks are on with various pension funds, insurance funds and financial institutions.
There is no dearth of funds for good companies
Boosting trade and investment opportunities with countries such as Taiwan could help in weaning India from its economic dependency on China
Foreign investment in pension funds regulated by the Pension Fund Regulatory and Development Authority (PFRDA) is capped at 49 percent under the automatic route.
Revised FDI norms had slowed down approvals, the border clash will make it even more difficult to get Chinese investment, say experts.
The UN Conference on Trade and Development (UNCTAD) said in a report on Monday that a lower but positive economic growth in India in the post-COVID19 pandemic period and India's large market will continue to attract market-seeking investments to the country.
The deals have taken place despite the global economy hobbling due to the coronavirus outbreak.
India had received FDI worth $1 billion in 2018-19 and $1.23 billion in 2017-18 from Cayman Islands, which is UK Overseas Territory.
The minister opined that strengthening of non-banking lenders or NBFCs, state cooperative banks, district cooperative banks, credit societies, etc is required to extend support to MSMEs during this challenging time.
That China’s loss can translate into India’s gain is a thinking rooted more in wishful thinking and nationalist myopia than on the ground realities
According to experts, Singapore has been able to outpace Mauritius with its ease of doing business policies, simplified tax regime and a large number of private investors.
The Narendra Modi-led government has enacted several vital reforms and taken long-term policy decisions aimed at restructuring the economy
Singapore emerged as the largest source of FDI in India during the last fiscal with $14.67 billion investments.
Domestic firms had invested nearly $2.56 billion in their joint ventures/wholly-owned subsidiaries during April 2019, according to the RBI data on Outward Foreign Direct Investment.
Finance Minister Nirmala Sitharaman in her fourth tranche of the economic package announced that commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.