Question : FDI INFLOW



(a) the details of Foreign Direct Investment (FDI) flow during the last year and the current year, sector-wise and year-wise;

(b) the percentage of Foreign Institutional Investors (FII) in total FDI inflow during the last two years and the current year and the steps taken to attract more FII;

(c) whether there has been substantial decline in FDI inflow in the infrastructure development of Petroleum and Natural Gas sector during the last three years; and

(d) if so, the details thereof and the steps taken by the Union Government for increasing the FDI inflow?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF C0MMERCE & INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)

(a): A statement on Foreign Direct Investment (FDI) equity inflows, between April, 2009 to September, 2010, sector-wise, is at Annexure.

(b): The total FDI equity inflows and net investment by Foreign Institutional Investors in the last two years and in the current year are as below:

Financial Year	FDI equity inflows	Net Investment by Foreign
(April-March)	(US $ billion)	Institutional Investors	(US $ billion)
2008-09 27.330 -15.017
2009-10 25.834 29.047
2010-11 (up to September, 2010) 11.005 22.298

(c) & (d): FDI in the Petroleum & Natural Gas sector has been of the order of US $ 1427 Million, US $ 412 Million and US $ 272 Million in 2007-08, 2008-09 and 2009-10 respectively.

The Government of India is encouraging FDI in the exploration, production and Transportation network for Petroleum and Natural Gas, in order to supplement the efforts of the national oil companies, to meet the rising demand of oil and gas. It plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. This is furthered through a number of joint commissions and joint working groups, for promoting industrial, technical and scientific cooperation with select countries. The Government has also set up CEO’s /Business Leaders’ fora with some countries for active business-to-business cooperation and for developing a road map for partnership and industrial cooperation. The Government also coordinates with industry associations, in their activities relating to promotion of industrial cooperation.