Lok Sabha Question No. 2681 (UNSTARRED), answered on 2019-12-04
Subject: NRI Investment in Andhra Pradesh
Ministry: COMMERCE AND INDUSTRY
Asked by: Jayadev Galla

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

## LOK SABHA

UNSTARRED QUESTION NO. 2681.

TO BE ANSWERED ON WEDNESDAY, THE 04 TH  DECEMBER, 2019.

## NRI INVESTMENT IN ANDHRA PRADESH

## 2681.  SHRI JAYADEV GALLA:

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

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether  Non-Resident  Indian  (NRI)  investments  in  the  State  of  Andhra Pradesh  have  come  down  from  2016-17  which  reported  at  Rs.  43  crore  to Rs. 6.2 crore in 2019-20;
- (b) if  so,  the  details  of  the  reasons  behind  this  downward  trend  by  the  NRIs  in Andhra Pradesh;
- (c) the details of the measures taken/ proposed to be taken to convince the NRIs to invest in the country in general and in Andhra Pradesh in particular; and
- (d) whether any incentives/additional benefits, etc. are being given/ proposed to be given to the NRIs for their investment?

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

(a): FDI data on NRI Investment in Andhra Pradesh Financial year wise is as under:

| Period              |   FDI Inflow in Rs. Crore |
|---------------------|---------------------------|
| 2016-17             |                     42.43 |
| 2017-18             |                      9.42 |
| 2018-19             |                     14.79 |
| 2019-20 (Sept 2019) |                      8.19 |

Source: Reserve Bank of India based on FC-GPR Form filed by the Indian  investee  companies,  FC-TRS  Form  as  filed  by  the  resident transferor/transferee in RBI.

- (c) & (d):

Government  does  not  fix  targets  for  FDI  inflows  as  FDI  is  largely  a matter  of  private  business  decisions.  Government  of  India  has  put  in place a liberal and investor friendly FDI policy. FDI inflows depend on a host  of  factors  such  as  availability  of  natural  resource,  market  size, infrastructure  and  investment  climate  as  well  as  macro-economic stability  and  investment  decision  of  foreign  investors.  It  has  been  the endeavor of the Government of India to put in place an enabling and investor  friendly  FDI  Policy.    Measures  taken  by  the  Government  on FDI  Policy  reforms  have  resulted  in  increased  FDI  inflows  in  the country.    The  year-wise  increase  in  FDI  inflow  can  be  seen  in  the

- (b): following table:

|   Sl. No. | Financial Year   |   Total FDI Inflow (in US $ billion) |
|-----------|------------------|--------------------------------------|
|         1 | 2014-15          |                                45.15 |
|         2 | 2015-16          |                                55.56 |
|         3 | 2016-17          |                                60.22 |
|         4 | 2017-18(P)       |                                60.97 |
|         5 | 2018-19(P)       |                                62    |

Source: Reserve Bank of India

(P)- Figures are provisional

Government has put  in  place  an  investor-friendly  policy  under  which FDI  up  to  100%  is  permitted  under  the  automatic  route  in  most sectors/activities  including  investments  from  Non-Resident  Indians (NRIs).  Foreign  Direct  Investment  (FDI)  policy  is  reviewed  on  an ongoing basis, with a view to making it more investor friendly, including for NRIs.

The extant FDI policy allows special dispensation for NRI investments in  various  sectors  such  as  Construction  Development,  Civil  Aviation etc. Further, investments made under Schedule IV of FEMA (Non-Debt Instruments) Rules, 2019 on non-repatriation basis by NRIs, OCIs and Companies,  Trusts  and  Partnership  Firms  incorporated  outside  India and  owned  by  such  NRIs  and  OCIs  are  deemed  to  be  domestic investment at par with investment made by residents.

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