[caption id="attachment_16839" align="alignleft" width="299"]                        FILE PHOTO[/caption] FDI inflows into the country may accelerate to 2.5 per cent of GDP over the next five years from 1.9 percent of GDP in 2016-17, according to a report from UBS Securities India. Pointing out that the foreign direct investments (FDI) into India have nearly doubled over the past decade to USD 42 billion, it noted that "post-2014 general election, FDI inflows saw a compound annual growth rate of 11 percent versus a dip of 6 percent seen over the previous 5 years." The report noted that unlike China, where the government has phased out FDI-favoured policies, India will be increasingly recognized as a favored destination for overseas investors "if growth is accompanied with continuous structural reforms". Interestingly, the report said that over the last couple of years, India has recorded a pickup in FDI inflows to the manufacturing sector. Historically such investments have been more towards the service sector. According to the report, FDI flows into manufacturing "bodes well for creating a productive spill-over impact on other sectors of the economy; for instance, boosting exports and creating jobs". "In 2016-17, the largest increase in FDI was in the telecom sector (USD 4.2 bn) followed by insurance. Besides these, cement, electrical equipment, banking services, metallurgical industries and the broadcasting sectors also received higher flows in the last fiscal," it added.