Question : . FOREIGN DIRECT INVESTMENT



(a) the details of proposals for ForeignDirect Investment (FDI) received includingfrom Non- Resident Indians and approved/rejected by the Foreign InvestmentPromotion Board along with the actual FDIinflow and its utilisation in various sectorsduring each of the last three years and thecurrent year, sector and State/UT-wisein- cluding North-Eastern States;

(b) the criteria adopted by theGovernment for inviting investment byforeign companies in the country andbenefits accrued to the indigenous- companies thereby;

(c) the details of FDI proposals lyingpending with the Government for approval,the reasons for their pendency along themeasures taken by the Govern- ment for theirspeedy clearance;

(d) whether some of the FDI proposalsreceived/ cleared are limited to few Statesonly, if so, the details thereof along withthe reasons therefor;

(e) whether some companies have beenbanned to make investment in the countryduring the said period and if so, the detailsthereof and the reasons therefor;

(f) whether some business organisationshave requested the Government to removetrade and investment barriers and if so, thedetails thereof; and

(g) the further measures taken/proposedto be taken by the Government includingspecial dispensations/facilities to NRIs toenhance investment in the country as awhole along with the reviews/changesmade, if any, in the current FDI norms/policy and the success achieved therefrom?

Answer given by the minister



THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE AND INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)
(a):Year-wise details of the proposals received during the last three years and the current year are as under:

 
Year No. of fresh proposals received 2012 218 2013 219 2014 153 2015 21 (till date)
The details of the proposals approved/ rejected during the last three years and the current year are as under:
 
Year No. of proposals No. of proposals approved rejected
2012 199 80 2013 198 33 2014 204 42 2015 11 9 (till date)
Proposal-wise actual FDI inflows and its utilization in various sectors and State/Union Territory are not maintained centrally.

(b):Investment by foreign companies in the country is guided by the FDI policy. FDI in the country is permitted subject to, applicable laws/regulations; security and other conditionalities. FDI brings much needed capital, technology and global best practices to the investee Indian companies.

(c):Filing of FDI proposals is continuous process and proposals for investment are placed before the FIPP only after completion of all the mandatory paper work.

(d) & (e):FDI proposals can be made for investment in any State of the country. Foreign Investment Promotion Board (FIPB) considers these proposals on case to case basis. FIPB has not banned invest- ment from any company in the country.

(f)&(g):Government has put in place an investor- friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities including investments from Non- Resident Indians (NRIs). Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to making it more investor friendly, including for NRIs. Significant changes in the FDI policy regime have been made in the recent past in certain sectors namely Railway infrastructure, construction develop- ment, defence, medical devices & insurance, to provide further openings for FDI in India.

Further, the extant FDI policy allows special dispensation for NRI investments in the construction development sector, Scheduled Air Transport Services, Domestic Scheduled Passenger Airlines, Non-Scheduled Air Transport Services, Non- Scheduled airlines, Chartered airlines, and Cargo airlines.