THE MINISTER OF STATE (INDEPENDENT CHARGE)OF THE MINISTRY OF COMMERCE AND INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)
(a) The total Foreign Direct Investment (FDI) including Non-resident Indian (NRI) investments during the last three years and the current financial year ( up to April, 2014) is as under :
Sl. No. Financial Year Total FDI inflow ( in US $ million) 1 2011-12 (P) 46,556 2 2012-13 (P) 34,298 3 2013-14 (P) 36,396 4 2014-15 (P) (up to April, 2014) 2,597
Government does not fix targets for FDI inflows as FDI is largely a matter of private business decisions.
(b) Data in this regard is not maintained centrally. Investment by foreign companies in the country is governed by the FDI policy as well as the sectoral laws, regulations and policies. As far as the FDI policy is concerned, FDI upto 100% is allowed on the automatic route in most sectors/activities, with restrictions only in a limited number of areas. FDI is prohibited in Lottery Business including Government/private lottery, online lotteries, etc.; Gambling and betting including casinos etc.; chit funds; Nidhi company; trading in Transferable Development Rights(TDRs); Real Estate Business or Construction of Farm Houses; Manufacturing of Cigars, cheroots, Cigarillos and cigarettes, of tobacco or of tobacco substitutes; activities/sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems).
(c) The 9th Global Capital Confidence Barometer, October 2013, a survey by Ernst & Young (E&Y) has reported that India is the top investment destination among emerging and developed markets.
(d)&(e) Government has put in place a liberal and transparent policy for Foreign Direct Investment(FDI), including investments from Non-resident Indians (NRIs), where most of the sectors are open to FDI under the automatic route. The extant policy allows special dispensation for NRI investments in the construction development sector covering townships, housing, built-up infrastructure and construction-development projects (which include, but are not restricted to housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure) exempting them from the performance linked conditionalities, otherwise applicable to FDI in the sector. It also allows a special dispensation for NRI investments in the sectors of Scheduled Air Transport Services, Domestic Scheduled Passenger Airlines, Non-Scheduled Air Transport Services, Non-Scheduled airlines, Chartered airlines, and Cargo airlines, wherein 100% NRI investment is permitted under the automatic route.
The government reviews the FDI policy from time to time with a view to making it investor friendly including for NRIs. Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investor about investment policies and procedures and opportunities. International cooperation for industrial partnerships is solicited both through bilateral and multilateral arrangements. Government coordinates with apex industry associations, in their activities relating to promotion of industrial cooperation to stimulate inflow of foreign direct investment into India. The Government has also set up ‘Invest India’, a joint venture company between the Department of Industrial Policy & Promotion and FICCI, as a not-for-profit, single window facilitator, for prospective overseas investors and to act as a structured mechanism to attract investment focused on MSME Sector.
Government has established an organization, called Overseas Indian Facilitation Centre(OIFC) in 2007, to facilitate NRIs who desire to invest in India. OIFC has organized several Investment and Interactive Meets in different countries, as also during Pravasi Bharatiya Divas(PBD) in India. Further, an electronic portal has also been launched to reply to the queries of potential overseas investors by OIFC and its knowledge partners, for facilitation of investment by overseas Indians.
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