Question : Foreign Direct Investment

(a) the details of proposals for Foreign Direct Investment (FDI) received and approved/rejected by the Foreign Investment Promotion Board along with the actual FDI inflow in various sectors during each of the last three years and the current year, sector and country-wise including China;

(b) the details of utilisation of FDI in various sectors including Railways and Defence during the said period, sector-wise;

(c) the countries which are top foreign investors in India/along with the sectors benefited most through FDI in the country;

(d) the details of FDI proposals lying pending with the Government for approval, the reasons for their pendency along the measures taken by the Government for their speedy clearance;

(e) whether the FDI policy is being progressively liberalised in the recent past and if so, the details thereof indicating the sectors which have been opened for FDI during the said period along with percentage of equity allowed therein?

(f) the benefits/success achieved thereby in increasing production, export and employment generation of the country; and

(g) the further measures taken/proposed to be taken by the Government to enhance investment in the country?

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

(a) & (b): Year-wise details of the proposals received during the last three years and the current year are as under:
<pre>

Year No. of fresh proposals received*
2012 218
2013 219
2014 150
2015 170
(*Does not include proposals for amendment)

The details of the proposals approved/ rejected during the last year and the current year are as under:
Year Proposals approved* Proposals rejected
2012 199 80
2013 198 33
2014 225 40
2015 (till date) 85 31
</pre>

(*Include amendments as well as proposals received during pervious years)

Proposal-wise actual FDI inflows and its utilization in various sectors are not maintained centrally. However, actual FDI inflows during each of the last three years and the current year, sector and country wise including china is as per Annexure –I.

(c): Statements showing top 10 country-wise FDI equity inflows and top 10 sector-wise FDI equity inflows from April 2012 to May 2015 are as per Annexure-II.

(d): e-Filing of FDI proposal is a continuous process and proposal are placed before the FIPB only after completion of all the paper works.

(e): In the light of the importance of foreign direct investments for economic growth and development, the government announced key FDI reforms in the defence and railways sectors. The entire range of rail infrastructure was opened to 100% FDI under the automatic route, and in defence, sectoral cap was raised to 49%. To boost infrastructure creation and to bring pragmatism in the policy, the Government reviewed the FDI policy in the construction development sector also by creating easy exit norms, rationalizing area restrictions and providing due emphasis to affordable housing.

To give impetus to the medical devices sector, a carve out was created in FDI policy on the pharmaceutical sector and now 100% FDI under automatic route is permitted. The Government, in order to expand insurance cover to its large population and to provide required capital to insurance companies, raised the FDI limit in the sector to 49%. Pension sector has also been opened to foreign direct investment up to the same limit. The FDI policy provisions pertaining to NRI investment have also been clarified by providing that for the purposes of FDI policy, investment by NRIs on non-repatriation basis under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will be deemed to be domestic investment at par with the investment made by residents.

(f): These measures are expected to increase FDI, which complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into increased production, export and employment generation of the country. Further, as FDI is largely a matter of private business decisions, global investors normally take time to assess a new policy and its implications in the context of a particular market before making investment.

(g): Review of Foreign Direct Investment (FDI) policy is an ongoing process. Significant changes are made in the FDI policy regime from time to time to ensure that India remains increasingly attractive and investor-friendly.

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