(a) whether the Planning Commission in their Draft Approach Paper of Eleventh Five Year Plan has expressed concern over economy`s failure to attract much needed Foreign Direct Investment (FDI) to the tune of about 1.5 billion dollars;
(b) if so, the reasons therefor; and
(c) the efforts being made to attract more FDI in the country?
MINISTER OF STATE IN THE MINISTRY OF PLANNING (SHRI M.V. RAJASEKHARAN)
(a): No, Sir. The Draft Approach Paper to the Eleventh Five Year Plan states: `The
flow of FDI amounted to about $6 billion in 2005-06 and could increase significantly
during the 11th Plan`.
(b): In view of (a) above, does not arise.
(c):The Government has taken major initiatives to attract more FDI in the country.
Most of the equity limits in manufacturing and minerals sectors are on 100%
automatic route and restricted only in production of defense equipment and atomic
energy. Infrastructure services in urban areas are allowed 100% automatic route
although there are equity limits for telecom, airports, civil aviation and gas pipelines.
Most of the services are allowed 100% foreign equity except banking, insurance and
some professional services.