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FDI in services sector rose by 36.5% in 2018-19

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According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Foreign Direct Investment (FDI) in the services sector grew at 36.5% amounting to $9.15 billion in 2018-19. The services sector comprises of finance, banking, insurance, outsourcing, R&D, courier, tech testing and analysis.

FDI in services sectorKey Points:

  • In 2017-18, FDI of service sector was $6.7 billion.
  • FDI inflows contributes over 60% to the Gross Domestic Product(GDP).
  • Between April 2000 and March 2019, service sector accounted for 18% of FDI in India.
  • Other sectors which recorded healthy growth in FDI inflows are computer software and hardware, trading, automobile industry, and chemicals.
  • For the first time in the last six years in 2018-19, the overall FDI inflows reduced at 1% to $44.37 billion as foreign investments declined in telecommunication and pharmaceutical sectors.
  • FDI in Chemical sector also declined in 2017-18 resulting in $1.30 billion investment as compared to $1.39 billion in 2016-17.

About DPIIT:
♦ Parent Organization: Ministry of Commerce and Industry
♦ Minister In charge: Piyush Goyal