Which sector is most attractive for FDI inflows in India and Why?

economy : Foreign Direct Investment: Which sector is most attractive for FDI inflows in India and Why?

Answer by Akshay Mall:

Service Sector.

Here's why:

1. India has the world's second fastest growing services sector in India after China(Obviously!). A lot of companies abroad use our KPOs for their customer service. Outsourcing, basically.

Economic Survey: India has second fastest growing services sector – The Times of India

2. Services Sector contribute towards 60% of India's GDP. India's government will always be wary of this fact and will take steps that would benefit this sector. So there are always going to be opportunities in this region.

Service Sector in India

Another sector that could be attractive: Defense Sector

1. FDI Cap increased to 49% from 26%. It is bound to attract the big manufacturers in the arms sector to India!

India Increases Foreign Investment Limits In Defense And Insurance Sectors To 49%

2. India is the World's largest Arms Importer so India would love to have some more in-house production and become less dependent on others for our security.

Arms industry

My 2 cents.

Which sector is most attractive for FDI inflows in India and Why?

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