Lok Sabha Question No. 1652 (UNSTARRED), answered on 2017-07-26
Subject: Investment Meets
Ministry: EXTERNAL AFFAIRS
Asked by: RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.1652

## TO BE ANSWERED ON 26.07.2017

## INVESTMENT MEETS

## 1652. SHRI RABINDRA KUMAR JENA:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a) the  details  of  investment  meets  organized  by  Overseas  Indian Facilitation Centre (OIFC) in different countries during the last three years and the current year, country and year-wise;
- (b) the  achievements  of  OIFC  in  promoting  and  facilitating  economic engagement by Overseas Indians;
- (c) the total investment made by NRIs during the last three years and the current year, year-wise; and
- (d) the steps taken by the Government to encourage NRI investment in the country?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS [GEN. (DR) V. K. SINGH (RETD)]

(a)   The Overseas Indian Facilitation Centre (OIFC) was set up in 2007 as a not  for  profit  Trust  in  Partnership  with  Confederation  of  Indian  Industry (CII).    Following  merger  of  erstwhile  MOIA  with  the  Ministry  of  External Affairs  in  February  2016  and  transfer  of  work  relating  to  promotion  of investment in India by overseas Indians to Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, it was decided with the approval of the Cabinet to wind up OIFC.  The organization ceased to exist from 30 March 2017.

However, the information sought for is as follows:-

| Year    | Investment Meet                                                                                                                           | Country      |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| 2014-15 | 1) Diaspora Engagement Meet, Manama, 06.09.2014 2) Regional Pravasi Bharatiya Divas, London, 16.10.2014                                   | Bahrain U.K. |
| 2015-16 | 1) Overseas Meeting with Indian investors and businessmen, Dubai, 17.10.2015 2) Regional Pravasi Bharatiya Divas, Los Angeles, 14.11.2015 | UAE USA      |

| 2016-17   | Nil                                      |
|-----------|------------------------------------------|
| 2017-18   | Nil. OIFC was closed down on 30.03.2017. |

- (b) The  objectives of  the  Investment  Meets  was  to  engage  with prospective overseas Indian investors and inform them about the facilities and benefits available to them for investment in India.  OIFC's activities were utilised to facilitate economic engagement of overseas Indians with India;  advise  them  about  investment  opportunities;  and  facilitate  their business partnerships in India.  Data about investments made by overseas Indians in India is not maintained by the Government.

## (c)    Information  about  investments  by  Non-Resident  Indians  is  given below:-

(Amount in Rupees crore)

| Financial Year   | Investment by NRIs as FDI in   | NRI Investments in Stock Exchange in India   | NRI Investments in Stock Exchange in India   | NRI Investments in Stock Exchange in India   |
|------------------|--------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|                  | India                          | Purchases                                    | Sales                                        | Net Position                                 |
| 2014-15          | 1,054.11                       | 12629.20                                     | 25233.90                                     | -12604.70                                    |
| 2015-16          | 1,675.95                       | 13406.00                                     | 6590.60                                      | 6815.30                                      |
| 2016-17          | 991.36                         | 14889.30                                     | 10244.90                                     | 4644.30                                      |
| Total            | 3,721.42                       | 40924.50                                     | 42069.40                                     | -1145.10                                     |

Source: Reserve Bank of India

- (d) The Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), including investments from Non-resident Indians  (NRIs),  wherein  most  of  the  sectors  are  open  to  FDI  under  the automatic route. The policy allows special dispensation for NRI investments  in  the  sector  of  townships,  housing,  built-up  infrastructure and construction-development projects (which include, but are not restricted  to,  housing,  commercial  premises,  hotels,  resorts,  hospitals, educational  institutions,  recreational  facilities,  city  and  regional  level infrastructure),  without  the  conditionalities  attached  to  FDI  in  such projects. It also allows a special dispensation for NRI investments in the sectors of Scheduled Air Transport Services, Domestic Scheduled Passenger Airlines, Non-Scheduled Air Transport Services, Non-Scheduled airlines, Chartered airlines and Cargo airlines, wherein 100% NRI investment  is  permitted  under  the  automatic  route.  Further  investment made  by  NRIs  on  non-repatriation  basis  under  Schedule  4  of  Foreign Exchange  Management  Act,  1999 (FEMA)  Regulation  is  deemed  to  be domestic investment at par with the investment made by residents.

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