Lok Sabha Question No. 2330 (UNSTARRED), answered on 2023-03-15
Subject: Liberalization of FDI Regime
Ministry: COMMERCE AND INDUSTRY
Asked by: Raju Bista

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2330.

TO BE ANSWERED ON WEDNESDAY, THE 15 TH  MARCH, 2023.

## LIBERALIZATION OF FDI REGIME

## 2330.  SHRI RAJU BISTA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the steps taken by the Government to liberalize FDI regime; and
- (b) the  details  of  the  year-wise  FDI  in  India  from  2014  onwards  including  its comparison with preceding years?

## 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): To promote Foreign Direct Investment (FDI), the Government has put in place an investor friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. Almost 98% of FDI equity inflow has come under automatic route during the current financial year 2022-23(up to December, 2022). Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains an attractive and investor friendly destination. This has resulted in the increasing trend of FDI inflows into the country since the last eight years. Changes are made in the policy  after  having  consultations  with  stakeholders  including  apex  industry chambers, associations, representatives of industries/groups and other organizations. FDI policy provisions have been progressively liberalized and simplified across various sectors such as Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power Exchanges, e-commerce activities, Coal Mining, Contract Manufacturing, Civil Aviation etc. In the recent past,  reforms  in  the  FDI  Policy  have  been  undertaken  in  sectors  such  as Defence,  Insurance,  Petroleum  &  Natural  Gas  and  Telecom.  Further,  all proposals  seeking  Government  approval  under  FDI  route  are  now  filed  on National Single Window System (NSWS) Portal.

(b): Details  of  year-wise  FDI  Inflow  in  India  from  2014  onwards  including  its comparison with preceding years is as under:

|   S. No. | Financial Year   |   Amount of FDI inflow (in US$ billion) | Growth   |
|----------|------------------|-----------------------------------------|----------|
|        1 | 2014-15          |                                   45.15 | (+) 25%* |
|        2 | 2015-16          |                                   55.56 | (+) 23%  |
|        3 | 2016-17          |                                   60.22 | (+) 8%   |
|        4 | 2017-18          |                                   60.97 | (+) 1%   |
|        5 | 2018-19          |                                   62    | (+) 2%   |
|        6 | 2019-20          |                                   74.39 | (+) 20%  |
|        7 | 2020-21          |                                   81.97 | (+) 10%  |
|        8 | 2021-22(P)       |                                   84.84 | (+) 3%   |

(P)- Data is provisional. Subject to finalization by RBI. (*)- Growth for financial year 2014-15 in comparison to FDI inflow reported in 2013-14 i.e. US$ 36.05 billion.

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