MUMBAI: Services sector accounted for nearly 62 pct of the total FDI inflows into the country in 2016 with media, banking, non-financial services and insurance emerging as the new attractive industry for such investments, says a Nomura report. 

In 2016, total foreign direct investments (FDI) inflows stood at USD 46.4 billion - up 18 pct from $39.3 billion in the preceding year.

According to the global financial services major, country's service sector continued to take a lion's share (62 pct) in FDI with IT, telecom and construction still attracting large inflows. 

However, the report noted that "new sectors such as media, banking, non-financial services and insurance also emerged as attractive FDI destinations in 2016". 

"Overall, the direction as well as the composition (aggregate and sectoral) of FDI inflows is encouraging, in our view," Nomura said. 

"We believe this is testament to India's high growth rate, large potential and ongoing economic reforms and expect this trend to continue," it added. 

The report observed that within manufacturing industries, autos continued to be the largest recipient of FDI, but cement, electrical equipment and metallurgical industries also attracted higher inflows, in 2016. 

Over 2014-16, total FDI inflows rose at an average rate of 28 pct per year after a period of stagnation in 2009-13, Nomura said. 

As a share of GDP, FDI inflows stood at 2.1 pct in 2016 from 1.9 pct in 2015, it added.

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