Lok Sabha Question No. 2907 (UNSTARRED), answered on 2016-12-02
Subject: Foreign Capital Inflows and Outflows
Ministry: FINANCE
Asked by: ANANT KUMAR DATTATREYA HEGDE

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO.2907

## TO BE ANSWERED ON FRIDAY, DECEMBER 02, 2016/AGRAHAYANA 11, 1938 (SAKA)

' Foreign Capital Inflows and Outflows '

## QUESTION

## 2907:  SHRI ANANT KUMAR HEGDE

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  foreign  capital  inflows  and  outflows  from  India  during  the  last  three years and current year;
- (b) whether the Government is aware of increase in foreign capital outflow compared to the inflows, and
- (c) if so, the details thereof and reasons therefor and steps taken to check the trend?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

***

(a)     The details of foreign capital inflows and outflows from India during the last three years and current year is placed at the Annex.

(b) & (C) Government in consultation with regulators have taken a number of steps to boost the inflow of foreign capital to the country and check outflow. The limits for Foreign Portfolio investment (FPI) in the Central Government securities are being increased in phases to reach 5 per cent of the outstanding stock by March 2018.  FPIs are also permitted to invest in units of Real Estate Investment Trusts, Infrastructure Investment Trusts and Category III Alternative Investment  Funds.  All  investments  by  FPIs  in  Central  Government  Securities  and  State Development Loans (SDL) and corporate bonds are required to be made in securities having a minimum residual maturity of 3 years. Changes introduced in the Foreign Direct Investment Policy (FDI) policy to promote FDI inflows include increase in sectoral caps, bringing more sectors under automatic route and easing of conditionalities for foreign investment.

****

Annex referred to in part (a) of the Lok Sabha unstarred question no. 2907

| Item                                                     | Apr-Mar 2013-14   | Apr-Mar 2013-14   | Apr-Mar 2013-14   | Apr-Mar 2014-15   | Apr-Mar 2014-15   | Apr-Mar 2014-15   | Apr-Mar 2015-16   | Apr-Mar 2015-16   | Apr-Mar 2015-16   | Apr-Jun 2016-17   | Apr-Jun 2016-17   | Apr-Jun 2016-17   |
|----------------------------------------------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|
|                                                          | Cre dit (Infl ow) | Debit (Outf low)  | Net               | Cre dit (Infl ow) | Debit (Outf low)  | Net               | Cre dit (Infl ow) | Debit (Outf low)  | Net               | Cre dit (Infl ow) | Debit (Outf low)  | Net               |
| 1                                                        | 2                 | 3                 | 4                 | 5                 | 6                 | 7                 | 8                 | 9                 | 10                | 11                | 12                | 13                |
| 1. Foreign Investment (a+b) a) Foreign Direct Investment | 246, 766 43,5 82  | 220,3 80 22,01 8  | 26,3 86 21,5 64   | 308, 556 51,7 96  | 235,1 00 20,54 4  | 73, 456 31, 251   | 276, 433 59,8 78  | 244,5 42 23,85 7  | 31, 891 36, 021   | 72,1 15 14,1 74   | 65,92 4 10,08 6   | 6,1 92 4,0 88     |
| b) Portfolio Investment                                  | 203, 184          | 198,3 62          | 4,82 2            | 256, 761          | 214,5 56          | 42, 205           | 216, 555          | 220,6 85          | - 4,1 30 -        | 57,9 41           | 55,83 8           | 2,1 03 -          |
| 2.Loans (a+b+c) a) External Assistance                   | 134, 836 4,65 9   | 127,0 71 3,627    | 7,76 5 1,03 2     | 123, 355 5,78 0   | 120,1 70 4,054    | 3,1 84 1,7 25     | 120, 323 6,12 3   | 124,9 57 4,619    | 4,6 34 1,5 05     | 26,1 39 1,86 0    | 27,90 8 1,179     | 1,7 69 681        |
| b) Commercial                                            | 30,0 60           | 18,28 3           | 11,7 77           | 27,8 47           | 26,27 6           | 1,5 70            | 24,1 57           | 28,68 6           | - 4,5 29          | 3,28 0            | 5,381             | - 2,1             |
| Borrowings c) Short Term                                 | 100, 117          | 105,1 61          | - 5,04 4          | 89,7 29           | 89,84 0 78,47     | - 111 11,         | 90,0 43 88,8      | 91,65 3           | - 1,6 10          | 21,0 00           | 21,34 9           | 00 -              |
| To India                                                 | 108, 049          | 82,60 1 48,85     | 25,4 49 38,8      | 90,0 94           | 6 49,20           | 618 14,           | 84 59,9           | 78,25 4 43,93     | 10, 630 16,       | 21,1 39 11,5      | 21,28 8           | 349 - 148 1,3     |
| 3. Banking Capital of which : Non- Resident Deposits     | 87,7 50           | 8 32,98           | 92 - 10,8         | 63,2 62           | 5                 | 057               | 88                | 6                 | 052               | 73 9,76           | 10,19 5           | 78                |
| 4. Other Capital*                                        | 22,1 71 511,      | 4 463,0           | 13 48,7           | 28,9              | 27,88 6           | 1,0 28            | 24,4 19           | 21,17 7           | 3,2 42            | 1 129,            | 6,931             | 2,8 30            |
| Total Capital                                            |                   |                   |                   | 14 550,           | 461,6             | 89,               | 510,              | 468,9             | 41,               |                   | 122,0             | 7,1               |
| Account (1 to 4)                                         | 823               | 35                | 87                |                   |                   | 286               | 058               |                   | 128               | 155               | 50                | 04                |
|                                                          |                   |                   |                   | 919               | 33                |                   |                   | 30                |                   |                   |                   |                   |

P: Preliminary. PR:

Partially Revised.

*: Include Rupee Debt

Service.

Source:

Balance of Payments

Statistics, RBI

(US$ million)