Tax havens account for highest increase in FDI inflows

Source: The Economic Times, Jul 25, 2018

Foreign direct investment (FDI) inflows from tax havens such as Cayman Islands, the Bahamas and Liechtenstein have jumped leaps and bounds in the last one year, official data showed.

While FDI from Cayman Islands sharply rose 1,640% on year in 2017-18, in absolute terms the FDI inflow was $1.2 billion from $71 million in 2016-17, as per a Lok Sabha question answered by the commerce and industry ministry on Monday.

Bahamas showed a 475% rise in foreign inflows but the increase was from $0.24 million to $1.38 million in FY18. For Liechtenstein, the 392% increase was from $2.04 million in FY17 to $10.04 million last fiscal.

Overall, there was a 3.17% rise in FDI inflows into India at $44.8 billion in FY18 from $43.4 billion in FY17.

The FDI increase from Mauritius was 1.3% to $15.9 billion from $15.7 billion in FY17.

“Though Luxembourg, Switzerland and Ireland are not strictly tax havens, their favourable tax environment has given them this reputation,” said an expert on investment issues.

Luxembourg showed a 54.69% rise in FDI but that from Switzerland was flat at $514 million.


FDI in services sector slumps 23% in 2017-18

Source: The Hindu Business Line, Jul 15, 2018

New Delhi: FDI inflows in the services sector declined by about 23 per cent to USD 6.7 billion in 2017-18, according to the Department of Industrial Policy and Promotion (DIPP).

The sector had attracted FDI worth USD 8.68 billion in 2016-17. The services sector includes finance, banking, insurance, outsourcing, R&D, courier, tech testing and analysis. As far as overall FDI inflows are concerned, the growth rate recorded a five-year low of 3 per cent at USD 44.85 billion in 2017-18.According to Anis Chakravarty, Lead Economist and Partner, Deloitte India, the slowdown in FDI could be because of re-routing of investments to economies like the US which witnessed an increase in interest rates together with a stronger dollar. “Expectations of further rate hikes by Fed, along with the tariff issues, this year can be expected to result in a further slowdown in foreign inflows. The declining growth rate of FDI is more of an exogenous effect and the policy makers will have to continue to focus on macro-economic management,” Chakravarty said.

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FDI growth hits 5-year low in 2017-18

downloadSource: The Economic Times, Jul 01, 2018

Foreign direct investment (FDI) in India seems to be petering out with the inflows growth rate recording a five-year low of 3 per cent at USD 44.85 billion in 2017-18.

According to the latest data of the Department of Industrial Policy and Promotion (DIPP), FDI in 2017-18 grew by only 3 per cent to USD 44.85 billion. Foreign inflows in the country grew by 8.67 per cent in 2016-17, 29 per cent in 2015-16, 27 per cent in 2014-15, and 8 per cent in 2013-14.
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India Inc’s foreign direct investment dips 63% to $1.17 billion in May

Source: The Economic Times, Jun 25, 2018

Indian companies’ investments into their overseas subsidiaries/joint ventures fell by 63 per cent to $1.17 billion in May this year, according to RBI data.

In May 2017, India Inc’s foreign direct investment stood at $3.12 billion.

In April 2018, the outward foreign direct investment (OFDI) of Indian firms was $3.56 billion.

Of the total investment by domestic firms in overseas ventures in May 2018, $ 374.18 million was in the form of equity infusion, $162.96 million in loan and $630.45 million as guarantee issuances, as per Reserve Bank data.

Among the major companies that made investment in their overseas subsidiaries/joint ventures included Indiabulls Real Estate $368.09 million, ONGC $57.94 million, Tata Hitachi Construction Machinery $26.62 million and Wadhawan Global Captial $15.23 million.

Cumulatively, the overseas direct investment in first two months (April-May) of this fiscal stood at $4.73 billion.

HDFC Bank gets capital adequacy boost with Cabinet nod for Rs 240 bn FDI

download (2).jpgSource: Business Standard, Jun 13, 2018

In a move that is likely to make a marked improvement in HDFC Bank’s capital adequacy ratio, the Union Cabinet on Wednesday approved a proposal for foreign direct investment (FDI) worth Rs 240 billion for the lender.

The Cabinet has also approved a law for safety of dams, and has okayed the setting up of a National Committee for the purpose. State level committees will also be set up to oversee laws on dam safety at the state level.

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Govt counters UN report on fall in FDI, claims it rose to $61.96 bn in FY18

Source: Business Standard, Jun 09, 2018

New Delhi: Two days after a report by the United Nations Conference On Trade and Development (UNCTAD) showed that foreign direct investments into India fell by $4.5 billion in 2017, the government on Friday pointed to latest statistics to say that FDI has actually risen.

Addressing the media on four years of the Modi government, Ramesh Abhishek, Secretary at the Department of Industrial Policy and Promotion (DIPP) pointed out that FDI rose to $61.96 billion in 2017-18 from $60.08 billion the year before. FDI in the first four years of the Narendra Modi government rose to $222.75 billion from $152 billion in the previous four years, Abhishek added.

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FDI inflows to India decline by $4 bn in 2017

Source: Business Standard, Jun 07, 2018

New Delhi: Foreign Direct Investment (FDI) to India declined to $ 40 billion in 2017 from $ 44 billion in the previous year, said UNCTAD’S World Investment Report 2018.

“FDI inflows to South Asia contracted by 4 per cent to $ 52 billion, owing to a drop in inflows to India” the report said today.As per the UNCTAD, the foreign inflows to India decreased from $ 44 billion in 2016 to $ 40 billion in 2017.

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