economy : Foreign Direct Investment: Which sector is most attractive for FDI inflows in India and Why?
Answer by Akshay Mall:
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.
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.
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!
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.
My 2 cents.