Foreign direct investment is likely to have hit high of $ 34.9 billion in financial year 2015, a massive 61.6 per cent jump from $ 21.6 billion in the previous fiscal, according to a report by Japanese brokerage Nomura.

According to the report, the FY 2015 inflows are 1.7 per cent of GDP, up from 1.1 per cent in the previous year.

The report by its India economists attributed the higher FDI to the growing investor confidence in the country and lower outbound FDI following weak balance-sheet of domestic companies coupled with a weak global growth outlook.

According to the latest government data, as of April-February period of 2014-15, FDI grew by 39 per cent year-on-year to $ 28.81 billion.

The Nomura report is hopeful that the current financial year will be better in terms of inflows on the back of the recent liberalisation in the FDI regime, wherein the government has put most of the sectors on automatic route and out of the purview of the Reserve Bank.

“We expect FDI inflows to pick up further in FY 2016, driven by an improving domestic growth outlook, recent liberalisation of FDI limits and government efforts to improve the ease of doing business,” the report says.

Data for April-February FY 2015 shows that the infrastructure and services sectors led the pick-up. In infrastructure, telecom, oil & gas and mining sectors saw higher FDI inflows, while trading (wholesale, cash & carry) and IT services drove services inflows, the report noted.

FDI inflows into manufacturing remained lacklustre, although the auto sector was an exception, it added.

The largest single FDI inflow in recent years was the world’s largest spirit maker Diageo buying out United Spirits last fiscal for over $ 3 billion for a 55 per cent stake.

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