India attracted foreign direct investment (FDI) inflows of $22.53 billion during the first three months of the fiscal year starting on April 1, 90% higher than the April-June period last year, the government said on Saturday.
India‘s automobile industry accounted for 27% of the total FDI equity inflow, emerging as the brightest sector in Asia’s third-largest economy, followed by computer software and hardware and the services sectors which accounted for 17% and 11% of the inflows respectively, the trade ministry said in a statement.
“Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country,” the statement said.
Prime Minister Narendra Modi’s administration has cut corporate tax rates to woo manufacturers and revive private investment, introduced new farm laws and passed labour reforms aimed at making hiring and firing workers easier.
The news comes amid reports that Google is in talks to make large investments in India‘s Bharti Airtel and Tesla is in talks with three Indian companies for parts supplies.
• Reuters and Jim Pollard
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