India FDI Inflows Likely On Recovery Path: Nomura.

MUMBAI: Foreign direct investment (FDI) inflows into India seem to be entering into a recovery phase after falling in the previous fiscal ending March 31, Nomura said in a note to clients on Tuesday.

" FDI inflows should remain supported by several large FDI proposals in the oil & gas, metal and telecom sectors," said analysts Sonal Varma and Aman Mohunta in the report.

Simplification and fast-tracking of the approval process, a relaxation of rules and a possible increase in the FDI ownership ceiling in some key sectors, will also aid the inflows, according to the report.

Gross FDI inflows in April rose 43 percent on year to $3.1 bn, the highest monthly inflow since August 2009.

The rise is broad-based, with the strongest inflows into the services and manufacturing sectors , Nomura said.

To boost FDI inflows, the government on March 31 scrapped rules that required a foreign company to obtain its domestic joint venture partner's approval to make investment in the same field, Nomura said.

It has also allowed firms to issue equity against import of capital goods and liberalised foreign investment for production and development of agriculture seeds and planting material.

Source : economictimes.indiatimes.com