Question : FDI TO PROMOTE INDUSTRIAL GROWTH



(a) whether FDI proved conducive to promote industrial growth since August, 1991;

(b) if so, the details in this regard; and

(c) the industries that have gained substantial growth with the FDI after August, 1991?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (DR. RAMAN SINGH)

(a) to (c ) Industrial growth depends on various co-related factors including Foreign Direct Investment (FDI). The growth rate during the period 1991-2000 is given below. No data on industrial growth with particular reference to FDI is maintained because FDI is viewed as a supplement to domestic investment.

Annual Growth Rates in Industry (as measured by the index of industrial production)

Years	Mining	Manufacturing	Electricity	General
1991-92 0.6 -0.8 8.5 0.6 1992-93 0.5 2.2 5.0 2.3 1993-94 3.5 6.1 7.4 6.0 1994-95 7.6 8.5 8.5 8.4 1995-96 9.6 13.8 8.1 12.8 1996-97 -2.0 6.7 4.0 5.6 1997-98 5.9 6.6 6.6 6.6 1998-99 -1.7 4.3 6.5 4.0 1999-2000(Apr.-Dec.) 0 6.7 7.7 6.2

Note : Growth rates from 1994-95 are as per the IIP Base 1993-94=100 and those for earlier years are for IPP Base 1980-81=100
Source : Economic Survey years 1998-99 and 1999-2000.