Data compiled by the Department of Industrial Policy and Promotion (DIPP) shows 25 per cent year-on-year growth in foreign direct investment (FDI) into India in April at $2.32 billion. In April 2012, the country received FDI worth $1.85 billion.
FDI in April 2013 is said to be the highest level in the past six months. In September, 2012, foreign inflows were $4.67 billion.
Among the sectors, hotel and tourism received the highest investment at $2.32 billion, followed by pharmaceuticals with $987 million investment and, services with $238 million investment. Besides, chemicals sector received $51 million of foreign capital and construction received $32 million FDI, DIPP data shows.
The most FDI in April came from Singapore ($1.29 billion), followed by Mauritius ($355 million), the Netherlands ($173 million) and the US ($149 million).
Reports indicate that the rise in FDI is due to the measures taken by the government to improve investor sentiment. Since September, several reform initiatives have been taken, including liberalising FDI norms in civil aviation, retail and power exchanges.
In 2012-13, India attracted $22.42 billion of FDI compared to $36.50 billion in the previous financial year.