(a)Whether India has emerged at the top regarding Foreign Direct Investment as
reported in Indian Express dated 23.7.2004;
(b) If so, the facts of the matter and reaction of the Government thereto;
(c) The name of the sectors m which Foreign Direct Investment increased during last
two years ;and
(d) The step taken by the Goverment to attract more Foreign Direct Investement
To be Answered by Minister of State in the Ministry of Finance (Shri S.S. Palanimanickam)
(a) and (b) : United Nation Conference on Trade and Development(UNCTAD) has rated
India as the second `hottest` investment destination for the next four years. AT Kearney,a global management consulting firm has also rated India as the best BPO destination and the sixth most attractive investment destination in terms of FDI 2002/2003 over calendar year 2001 is given in the
(d) : Government has put in place a liberal and transparent Foreign Direct Investment
up to 100% is permitted on the automatic route for most activities/sectors except for a few sectors where caps have been prescribed. In the Budget speech 2004-05, Finance Minister has announced establishing an Investment Commission for wooing domestic and foreign investors. Further FDI will continue to be encouraged and actively sought, particularly in the areas of infrastructure, high technology and exports.