New Delhi: Foreign direct investment (FDI) into India increased by 24.2 percent year-on-year to USD 3.95 billion in April-May, Parliament was informed on Monday.
According to data from the Department of Industrial Policy and Promotion (DIPP), the country had received USD 3.18 billion of FDI in April-May 2012.
FDI inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies as well as through establishment of new companies, Commerce and Industry Minister Anand Sharma said in a written reply to the Lok Sabha.
Replying to a question about FDI in aviation, he said: "Keeping in view the sensitivity of the aviation sector, investment by foreign airlines has been allowed only up to 49 percent and on the government approval route."
India attracted USD 22.42 billion of FDI in 2012-13 compared with USD 35.12 billion in the previous fiscal, he said. Sectors that received large FDI inflows include hotels and tourism, pharmaceuticals, services, chemicals and construction.
The most inflows came from countries including Singapore, Mauritius, the Netherlands and the US.
On August 1, the government liberalised the FDI regime in about a dozen sectors, including telecom, and relaxed investment norms in multi-brand retailing.
India needs about USD 1 trillion from 2012-13 to 2016-17 to fund infrastructure such as ports, airports and highways to boost growth.
An increase in FDI will help support the rupee, which depreciated to a record low of 61.21 against the US dollar on July 8.
First Published: Monday, August 5, 2013, 17:03