Question : FDI

(a) the details of sectors under which Foreign Direct Investment (FDI) is currently permitted in India along with the maximum permissible investment cap in each sector;

(b) the total FDI inflow into the country during the last five years, sector-wise and State/UT-wise;

(c) the areas wherein maximum FDI has been made and the names of the countries which have made largest investments in India, area-wise and country-wise;

(d) whether the Government proposes to open up new avenues for FDI and if so, the details thereof and if not, the reasons therefor;

(e) whether the Government has taken any steps to remove the foreign investment imbalance in different parts of the country; and

(f) if so, the details thereof along with the steps taken by the Government to promote ''Make in India'' and attract foreign investment in the country?

THE MINISTER OF STATE (INDEPENDENT CHARGE)
OF THE MINISTRY OF COMMERCE & INDUSTRY
(SHRIMATI NIRMALA SITHARAMAN)

(a): Detailed FDI policy on various sectors indicating therein sector-wise FDI limits is provided in ‘Consolidated FDI Policy Circular of 2015’, as amended from time to time, through subsequent Press Notes, which is available at the website of Department of Industrial Policy and Promotion at www.dipp.nic.in.

(b): FDI inflow in the country is not maintained State/UT-wise but RBI Regional Offices-wise. Accordingly, total FDI inflow into the country during the last five years, as maintained, sector-wise and Region-wise is as per Annexure-1.

(c): Details of sectors receiving maximum FDI and the countries which have made largest investments in India are at Annexure-2.



(d): Review of FDI policy is an ongoing process.

(e) & (f): FDI policy is an enabling policy which is uniformly applicable in the country. Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), wherein most of the sectors are open to FDI under the automatic route. The Government reviews the FDI policy and makes significant changes from time to time, to ensure that India remains attractive & investor friendly destination.

The Government launched the ‘Make in India’ initiative, which aims at promoting India as an important investment destination and a global hub for manufacturing design and innovation. The initiative is aimed at creating a conducive environment for investment, development of modern and efficient infrastructure, opening up new sectors for foreign investments and forging a partnership between government and industry through a positive mindset.

A National Workshop was held on ‘Make in India’ initiative on 29th December 2014 to prepare Action Plans for one year and three years for the 22 identified sectors, viz., (i) Automobiles & Auto Components, (ii) Aviation, (iii) Aerospace & Defence, (iv) Basic Metals & Cement, (v) Biotechnology, (vi) Chemicals and Petrochemicals, (vii) Food Processing, (viii) Gems & Jewellery, (ix) ICTE Manufacturing, (x) Leather and Leather Products, (xi) Media & Entertainment, (xii) MSME, (xiii) Oil & Gas, (xiv) Pharmaceuticals, (xv) Power, (xvi) Ports and Shipping, (xvii) Railways, (xviii) Renewable Energy, (xix) Roads & Highways, (xx) Skill Development, (xxi) Textiles & Apparel and (xxii) Tourism. Ministries/Departments concerned have updated their action plans to identify quantifiable and measurable milestones in respect of each activity of their Action Plan. Cabinet Secretariat is monitoring the progress on Make in India Action Plans with the help of a professional agency.

Under the Make in India initiative, 22 identified sectors have committed to a total of 186 Make In India Action Plans; 85 Short Term Action Plans (1 year) and 101 Medium Term Action Plans (3 years).

Government has undertaken a number of steps to improve Ease of Doing Business in India. Ministries and State Governments have been advised to simplify and rationalize the regulatory environment through business process reengineering and use of information technology.

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