JOIN USForeign direct investment (FDI) in India grew by 23% to $12.75 billion (Rs 85,180 crore) during the April-June quarter of 2018-19, according to official data.
The foreign fund inflows in April-June 2017-18 stood at $10.4 billion (Rs 67,086 crore), the Department of Industrial Policy and Promotion data showed.
Key sectors that received maximum foreign investment during the first quarter of the fiscal include services (Rs 16,119 crore), trading (Rs 10,938 crore), telecommunications (Rs 10,681), computer software and hardware (Rs 9,354), and power (Rs 6,367 crore).
Singapore was the largest source of FDI during April-June 2018-19 with Rs 43,329 crore, followed by Mauritius (Rs 10,056 crore), Japan (Rs 5,890 crore), the Netherlands (Rs 5,631 crore), the UK (Rs 4,355 crore), and the US (Rs 2,325 crore).
A growth in foreign investment assumes significance against the backdrop of widening current account deficit and trade deficit.
The country’s current account deficit (CAD) is likely to touch 2.8% of GDP in 2018-19 on surge in crude oil prices, a report by SBI Research projected.
FPI and FDI inflows are expected to finance a major part of the CAD, the report noted.
FDI had increased at a five-year low growth of 3% at Rs 2,88,889 crore in 2017-18.
A decline in foreign inflows could put pressure on the country's balance of payments and may also impact the value of the rupee.