Union Finance Minister Arun Jaitley has reportedly said that India has attracted the highest-ever amount of foreign funds in 2015-16 and has seen a record 53 per cent rise in FDI since 2014. Also, the government had been able to attract a lot more foreign funds in the last two years by introducing comprehensive reforms.
The hike, according to Jaitley, was a result of the government’s relentless efforts to improve ease of doing business. He added that measures taken by the Centre to foster economic growth, ensure price stability and fiscal prudence boosted the overall macroeconomic stability, which in turn improves the investment climate in the country.
Further, as reported, the Finance Minister also defended foreign investors when questioned about the amount of money they were taking back as dividends and royalties. “If we say that profits cannot be taken...then nobody will come to invest (in the country),” Jaitley has been quoted in various reported, adding that they do not invest money for charity.
Moreover, Minister of State for Finance Arjun Ram Meghwal, has been quoted in media saying that it was a sign of strength when gross savings financed gross capital. In 2014-15, gross savings accounted for a 96.3 per cent share in financing gross capital formation, while the same stood at 95.2 per cent in 2013-14 and 87.6 per cent in 2012-13.
Indian markets were opened to FDI in 1991 and have been evolving over the years. In June this year, the government announced a series of changes in its FDI policy. It opened a number of sectors to 100 per cent FDI, such as the pharmaceuticals industry, civil aviation and animal husbandry, as well as e-commerce related to indigenous food products and broadcast technology such as DTH, cable and mobile television.