Union Finance Minister Arun Jaitley on Friday said the government had been able to attract a lot more foreign funds in the last two years by introducing comprehensive reforms. He said India saw a record 53% rise in foreign direct investment since 2014, as well as the highest-ever foreign fund inflow in 2015-16, PTI reported.
The hike was a result of the government's relentless efforts to improve ease of doing business, according to the senior Bharatiya Janata Party minister. Jaitley added that measures taken by the Centre to "foster economic growth, [ensure] price stability and fiscal prudence" had boosted the "overall macroeconomic stability", which in turn improves the investment climate in the country.
The finance minister also defended foreign investors when he was 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 said, adding that they do not invest money for charity.
Moreover, Minister of State for Finance Arjun Ram Meghwal said it was a sign of strength when gross savings financed gross capital, Outlook reported. In 2014-15, gross savings accounted for a 96.3% share in financing gross capital formation, while the same stood at 95.2% in 2013-14 and 87.6% 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% 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.
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