Lok Sabha Question No. 4609 (UNSTARRED), answered on 2021-03-24
Subject: Fall in FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar

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

## LOK SABHA

UNSTARRED QUESTION NO. 4609. TO BE ANSWERED ON WEDNESDAY, THE 24 TH  MARCH, 2021.

## FALL IN FDI

## 4609.  SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य  एवं उद्योग मंत्री

- (a) whether there has been a fall in FDI inflow during the last six years;
- (b) if so, the reasons therefor;
- (c) the details of FDI inflow during the said period, year-wise;
- (d) the steps taken by the Government to increase FDI inflow?

## ANSWER

## वाणिज्य  एवं उद्योग मंत्रालय में राज्य मंत्री (श्री सोम प्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): No, Sir. Foreign Direct Investments (FDI) inflow has in fact increased constantly  from  US$  45.15  billion  in  2014-15  to  US$  74.39  billion  in 2019-20.
- (c): Financial  Year  wise  details  of  FDI  Inflow  for  the  last  six  years  and current year (upto December, 2020) are as under:-

|   S. No. | Financial Year                    |   FDI inflow (in US$ billion) |
|----------|-----------------------------------|-------------------------------|
|        1 | 2014-15                           |                         45.15 |
|        2 | 2015-16                           |                         55.56 |
|        3 | 2016-17                           |                         60.22 |
|        4 | 2017-18                           |                         60.97 |
|        5 | 2018-19                           |                         62    |
|        6 | 2019-20                           |                         74.39 |
|        7 | 2020-21 (April to December, 2020) |                         67.54 |

NOTE:-  Figures  are  provisional  subject  to  reconciliation  with  RBI, Mumbai.

| (d):   | Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive & investor friendly destination. The following reforms have been undertaken by the Government recently across sectors:   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        | i. 100% FDI has been permitted in Intermediaries or Insurance Intermediaries                                                                                                                                                                                            |
|        | ii. Government amended the extant FDI Policy to permit Foreign Investment(s) in M/s Air India Ltd. by NRIs, who are Indian Nationals, up to 100% under automatic route.                                                                                                 |
|        | iii. FDI in defence sector is allowed up to 74% through automatic route (from earlier 49%) for companies seeking new industrial licenses. FDI beyond 74% and up to 100% will be permitted under Government route.                                                       |
|        | iv. This Department has released 'Consolidated FDI Policy Circular 2020' and amended the Standard Operating Procedure (SOP) for ease of processing FDI proposals                                                                                                        |

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