In the April-December period of the current financial year, five sectors such as defence, ports, coal, photographic raw film & paper and coir failed to attract any foreign direct investments (FDI). According to the Ministry of Commerce and Industry, except defence industries, the other four sectors had not received any FDI in 2015-16 so far. During the nine-month period of 2016-17, India attracted a total of $35.84 billion in foreign inflows, 22 percent higher as compared to $29.44 billion in the same period of precious year.
The defence sector attracted only $0.1 million FDI during the nine month period, despite in 2016, the government relaxing FDI norms in several sectors including defence. India imports 70 percent of its military hardware from different countries. As per the current policy, foreign investment beyond 49 percent has been permitted in the defence sector through the approval route in cases resulting in access to modern technology in the country or for other reasons.
As per the ministry data, the sectors which attracted maximum FDI in the April-December period of this financial year include services ($7.5 billion), trading ($2 billion), metallurgical industries ($1.25 billion), electrical equipment ($2 billion), telecommunications ($5.54 billion) and computer hardware & software ($1.81 billion).