With the government taking steps to improve ease of doing business and attract foreign investment, FDI inflows into the services sector grew by 85.5 per cent to $4.25 billion in the April-December period.
The sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received foreign direct investment (FDI) worth $2.29 billion during April-December 2014, according to the Department of Industrial Policy and Promotion (DIPP). The services sector contributes over 60 per cent to Indian GDP. FDI in the sector accounts for 17 per cent of the country’s total foreign investment inflows. The other sectors where inflows have recorded growth are: computer software and hardware ($5.3 billion), trading ($2.71 billion), automobiles ($1.78 billion) and chemicals ($1.19 billion).