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Posted on Feb 27, 03:52PM | IBNS
New Delhi, Feb 27 : The government on Wednesday said the foreign direct investment (FDI) inflows in the services sector grew robustly at 57.62 percent compared to the growth of overall FDI inflows at 33.6 percent, in 2011-12.
"However, in April-November, 2012-13, overall FDI inflows fell by 43.3% to US $ 15.85 billion from US $ 27.93 billion in the corresponding period in the previous year. FDI inflows in the top five services also fell by 9.7% to US $ 8.19 billion," Ministry of Finance said in a statement.
The Government has taken many policy initiatives to liberalize FDI policy for services sector.
This includes increasing FDI limit from 49 to 74% in teleports and DTH and cable networks, permitting FDI upto 74 percent in mobile TV, upto 49 percent in scheduled and non-scheduled air transport services and upto 50 percent in multi-brand retail trading.
The Government has also amended the existing policy on FDI in single brand product retail trading.
The share of services export of India in the world exports of services has been increasing faster than the share of merchandise exports in world exports.
It grew from 0.6 percent in 1990 to 1 percent in 2000 and 3.3 percent in 2011.
The overall openness of the economy reflected by total trade including services as a percentage of GDP shows higher degree of openness at 55 percent in 201-12 as compared to 38.1 percent in 2004-05.
The openness indicator based only on merchandise trade is 43.2 percent in 2011-12, as compared to 28.3 percent in 2004-05.