New Delhi, May 19: Foreign direct investment (FDI) in India increased 9 per cent to $43.48 billion in 2016-17 even as the government is planning to relax norms to attract more dollars in sectors such as construction and retail.
In 2015-16, the country had attracted $40 billion foreign investments.
"Increased FDI in the country are largely attributed to intense and bold policy reforms the government undertook to bring pragmatism in the FDI regime. The country has now become the top attractive destination for foreign investment," the commerce and industry ministry said in a statement.
"The FDI equity inflow received during 2016-17 is $43.48 billion... It is the highest ever for a particular financial year," it said.
Total FDI, including re-invested earnings, increased to a "new all time high" of $60.08 billion last fiscal from $55.6 billion in 2015-16, it added.
Commerce ministry officials said the government is weighing a proposal to ease FDI in construction, under which a domestic firm could be allowed to bring FDI even for undeveloped plots.
At present, 100 per cent FDI is allowed in construction subject to various conditions, including the stipulation that the Indian company (that receives FDI) can sell only developed plots, meaning plots where trunk infrastructure - roads, water supply, street lighting, drainage and sewerage - is available.
The government, officials said, may put certain restrictions while making changes in this condition.
Officials said the government is also planning to ease FDI policy in single-brand and multibrand retail trading.
There is also a proposal to allow 100 per cent FDI in single-brand retail through the automatic route.
At present, FDI up to 49 per cent is permitted under the automatic route.
