THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (DR. RAMAN SINGH)
(a) : The amount of inflow has generally registered an increasing trend except in
the year 1999. The year-wise Foreign Direct Investment (FDI) inflows from 1997 to
2002 (upto August) are as under :
( Rupees in crore )
Year 1997 1998 1999 2000 2001 2002 (Jan-Aug)
Inflow 12,989.27 13,269.21 9,259.90 10,441.20 16,071.50 12,438.44
? The above figures exclude ADRs/ GDRs.
(b) While India has fallen by 8 positions to 15th position, with a 20% decline in the
likelihood of receiving of FDI as per the A.T. Kearney FDI Confidence Index Report
of September 2002, in terms of actual performance, India is among the few
countries that have been able to buck the downward trend in world FDI inflows,
which declined by 51% in 2001 and is expected to further decline by 27% in 2002.
FDI inflows amounting to US$ 4.06 billion (excluding ADRs and GDRs) were
received during 2001-02 as against US$ 2.46 billion received in 2000-01, registering
a 66% growth. The upward trend in FDI inflows has been sustained during the
current financial year as well. FDI inflows amounting to US$ 678 million (excluding
ADRs and GDRs) were received during April and May, 2002 as against US$ 467
million received during the corresponding period in 2001, resulting in a growth of
45%. Further, as per the recent UNCTAD report, China, Malaysia, India and
Philippines have been identified as the four countries in developing Asia which are
expected to witness increased FDI inflows.
(c) & (d) : As explained in the reply to Part (b) above there has been no decline in
the FDI inflows into the country. Further, no target has been formally fixed for FDI.
(e) : The Government of India is making continuous efforts to make India an
attractive destination for FDI in the region by providing an internationally competitive
investment climate in terms of policy framework, factors and institutions. The FDI
policy is reviewed continuously to make it more investor friendly. In order to increase
FDI, the Government has permitted access through the automatic route for FDI upto
100% in most activities.
