Budget 2020
- PC : MRP
Finance Minister Nirmala Sitharaman today revealed the Foreign Direct Investment (FDI) data while presenting the Union Budget for 2020-21. The Finance Minister said that the FDI in the country has increased to USD 284 billion during 2014-19.
The minister has also announced that the foreign investment in India has been increased by 15 percent i.e. USD 26 billion during the first half of the current financial year.
What is Foreign Direct Investment (FDI)?
Foreign Direct Investment (FDI) plays a vital role in the growth of a country in terms of cash flow, knowledge, skills and technology.
A Foreign direct investment refers to the investment made by a company as a business entity in another country. Through FDI a foreign company operates its day to day activity in another country.
FDI can be held if an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.
Budget 2020:
Through the Union Budget Session for 2020-21, Finance Minister Nirmala Sitharaman announced the Increase in FDI to USD 284 billion during 2014-19 from USD 190 billion that came in during the years 2009-14.
According to the Finance Minister, sectors which attracted maximum foreign inflows during the period include the service sector, computer software and hardware, telecommunications, automobile and trading.
While Singapore continued to be the largest source of FDI in India followed by Mauritius, the US, the Netherlands, and Japan. During the first half of the financial year, Singapore invested USD 8 billion FDI in the country.
Union Finance Minister Nirmala Sitharaman announced to allocate a financial budget of Rs 99, 300 crores for the education sector along with Rs 3,000 crores for skill development in the financial year 2020-21.
Further, the finance minister announced that the education sector included;
(i) Degree-level full-fledged online education programme to be offered by top 100 institutes,
(ii) The introduction of new courses in 150 universities of the country by 2026,
(iii) The introduction of 'Ind-SAT' exam for Asian and African countries to help make India a higher education destination.
FDI is important for the country as it helps in boosting the growth of its economy. Today, India is a part of top 100-club on Ease of Doing Business (EoDB) and globally ranks number 1 in the greenfield FDI ranking.
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Highlights:
- Finance Minister Nirmala Sitharaman today revealed the Foreign Direct Investment (FDI) data while presenting the Union Budget for 2020-21.
- The Finance Minister said that the FDI in the country has increased to USD 284 billion during 2014-19.
- The minister has also announced that the foreign investment in India has been increased by 15 percent i.e. USD 26 billion during the first half of the current financial year.
