THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI ASHWANI KUMAR)
(a): Statement showing state-wise break-up of Foreign Direct Investment (FDI) approved during January 1999 to December,
2005 is at Annex.
(b) & (c): Government has put in place a liberal and investor-friendly policy on Foreign Direct Investment (FDI) under which
FDI up to 100% is permitted on the automatic route in most sectors / activities. Under the liberalized economic environment,
investment decisions, including choice of location, are taken by the entrepreneurs based on their commercial judgement and
other relevant factors which may include investment climate in different States, quality and availability of necessary
infrastructure, simplification of regulatory process etc. The FDI policy applies uniformly across the country with no
special dispensation for any particular state or region.
(d) & (e): As per the World Investment Report 2005 published by the United Nations Conference on Trade and Development and
Reserve Bank of India (RBI) data, the FDI inflow into India from USA and Japan is less than 1% of their total outflow. FDI
inflows depend on various factors both external and internal. Besides the macro-economic environment in the host economy,
global economic environment, corporate strategy of the transnational corporations, and economic situation in other FDI
destinations play a major role.
(f) to (h): Approval for foreign direct investment accorded by the Government reflects the intent of the entrepreneur to
invest in a particular State / Sector. However, a large number of approvals / clearances such as allotment of land, power
connection, registration of factories, administration of land laws, sales tax, etc. are to be accorded by the State
Government. Furthermore, implementation of projects may have a long gestation period. In such cases the investment is not
received immediately but over a period of time depending on the need of capital at various stages of project implementation.
ANNEX
STATEMENT REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 898 FOR ANSWER ON 28.11.06
STATEMENT ON STATE WISE BREAK-UP FOR FOREIGN DIRECT INVESTMENT (FDI)
APPROVED BY Government
DURING JANUARY 1999 To DECEMBER 2005
(Amount in crore)
S.No Name of No. of Amount of Foreign Direct % to Total the State Approvals Investment Approved (in Rs) Financial
1 MAHARASHTRA 2629 21,968.95 22.78
2 DELHI 1936 12,604.12 13.07
3 TAMIL NADU 1296 10,692.65 11.09
4 KARNATAKA 1517 9,270.76 9.61
5 GUJARAT 331 5,723.06 5.93
6 ANDHRA PRADESH 633 3,987.62 4.14
7 WEST BENGAL 258 2,251.99 2.34
8 MADHYA PRADESH 54 2,247.67 2.33
9 UTTAR PRADESH 236 1,937.81 2.01
10 HARYANA 227 1,749.53 1.81
11 PUNJAB 57 1,236.32 1.28
12 KERALA 184 1,217.16 1.26
13 PONDICHERRY 50 932.66 0.97
14 HIMACHAL PRADESH 17 891.48 0.92
15 RAJASTHAN 81 791.13 0.82
16 BIHAR 6 631.95 0.66
17 GOA 157 570.25 0.59
18 ORISSA 24 472.70 0.49
19 CHATTISGARH 7 216.24 0.22
20 CHANDIGARH 57 186.17 0.19
21 DAMAN & DIU 15 40.59 0.04
22 DADRA & NAGAR HAVELI 3 35.95 0.04
23 JHARKHAND 8 26.80 0.03
24 UTTARANCHAL 13 10.71 0.01
25 TRIPURA 2 2.41 0.00
26 MIZORAM 1 1.52 0.00
27 ASSAM 2 0.91 0.00
28 JAMMU AND KASHMIR 1 0.40 0.00
29 MEGHALAYA 1 0.00 0.00
30 MANIPUR 1 0.00 0.00
31 ANDAMAN & NICOBAR 1 0.00 0.00
32 State Not Indicated 987 16,732.87 17.35
 Grand Total 10792 96,432.39 Â
