Lok Sabha Question No. 2923 (UNSTARRED), answered on 2019-07-10
Subject: Decline in FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Jagdambika Pal, E. T. Mohammed Basheer, Gautam Gambhir

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 2923. TO BE ANSWERED ON WEDNESDAY, THE 10 TH  JULY, 2019.

## DECLINE  IN FDI

## 2923. SHRI JAGDAMBIKA PAL: SHRI E.T. MOHAMMED BASHEER: SHRI GAUTAM GAMBHIR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Foreign  Direct  Investment  (FDI)  inflow  in  the  country  has  declined during the last one year and the current year;
- (b) if  so,  the  details  thereof  along  with  the  number  of  FDI  proposals  approved  and actual FDI inflow during the said period;
- (c) the  measures  taken/proposed  to  be  taken  by  the  Government  to  improve  the investment environment in the country;
- (d) whether the Government proposes to review FDI policy, particularly in pharmaceuticals, agricultural land, multilayered marketing and direct selling industry to attract more foreign investment in the country; and
- (e) if so, the details thereof along with the study, if any, conducted by the Government to  ascertain  its  impact  on  various  sectors  including  rural  development  works  and pharmaceuticals companies in the country?

## ANSWER वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): No,  Sir.  During  the  last  financial  year  2018-19,  the  country  has  recorded highest  ever  Foreign  Direct  Investment  (FDI)  inflows  of  USD  64.38  billion which is 6% higher compared to previous financial year 2017-18 (USD 60.97 billion).  Further,  as  per  data  available  for  April,  2019  (F.Y.  2019-20),  an amount of USD 6.95 billion has been reported as FDI inflows, which is 3% more compared to April, 2018 (USD 6.77 billion).
- (b): The  details  of  FDI  inflow  and  number  of  FDI  proposals  approved  (this includes proposals through the government approval route only) during the last one year and current year are as under:

|   S. No. | Financial Year   | Amount of FDI Inflow (USD billion)*   | FDI Proposals Approved (in number)   |
|----------|------------------|---------------------------------------|--------------------------------------|
|        1 | 2018-19          | 64.38                                 | 59                                   |
|        2 | 2019-20          | 6.95 (upto April, 2019)               | 5 (upto May, 2019)                   |

(*)-Figures are provisional subject to reconciliation with RBI.

- (c ) to(e): It has been the endeavour of the Government to put in place an enabling and  investor friendly FDI policy. The intent is to make the FDI policy more investor  friendly  and  remove  the  policy  bottlenecks  that  have  been hindering  investment  inflows  into  the  country.  The  extant  FDI  policy framework follows a negative list approach wherein barring a select few sectors,  FDI  is  permitted  up  to  100%  in  the  automatic  route,  subject  to applicable laws/regulations, security and other conditionalities. Review of FDI policy is an ongoing process and changes are made in the FDI policy regime,  from  time  to  time,  to  ensure  that  India  remains  an  attractive investment destination.  FDI  in  various  sectors  is  allowed  in  a  calibrated manner  after  having  intensive  consultations  with  stakeholders  including concerned  Ministries/  Departments,  State  Governments,  apex  industry chambers, Associations and other organizations taking into consideration their  views/comments.  However,  no  such  study  has  been  conducted  by the Government.

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