Lok Sabha Question No. 1630 (UNSTARRED), answered on 2021-12-08
Subject: FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Manoj Kishorbhai Kotak, Raksha Nikhil Khadse

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 1630. TO BE ANSWERED ON WEDNESDAY, THE 8 TH  DECEMBER, 2021.

FDI

## 1630.  SHRI MANOJ KOTAK:

## SHRIMATI RAKSHA NIKHIL KHADSE:

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

## वाणिज्य  एवं उद्योग मंत्री

- (a) whether it is a fact that Government is considering foreign investment as one of the most important drivers of economic growth;
- (b) if so, the details of the FDI and portfolio investments in the last five year;
- (c) whether  the  Government  plans  to  attract  foreign  investment  and  if  so,  the details thereof; and
- (d) whether the  Government  plans for  effective  management  for  ease  of  doing business and investment in India?

## 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): Foreign Direct Investment (FDI) is one of the important drivers of economic growth and a source of non-debt finance for the economic development of India. FDI complements and supplements domestic investment. Domestic companies are benefited through FDI by way of enhanced access to supplementary capital and state-of-art-technologies, as also exposure to global managerial practices resulting into employment generation and accelerated growth of the sectors.
- (b) : The  details  of  foreign  investment  reported  through  routes  of  Foreign  Direct Investment  (FDI)  inflow  and  Foreign  Portfolio  Investment  (FPI)  inflows  (net) during the last five financial years are as under:

## (Amount in USD Million)

|   S. No. | Financial Year   | Total FDI Inflow   | FPI inflows (net)   |
|----------|------------------|--------------------|---------------------|
|        1 | 2016-17          | 60,220             | 7,735               |
|        2 | 2017-18          | 60,974             | 22,165              |
|        3 | 2018-19          | 62,001             | (-) 2,225           |
|        4 | 2019-20          | 74,390             | 552                 |
|        5 | 2020-21          | 81,973             | 38,725              |

Source: Reserve Bank of India.

- (c): To promote FDI, the Government has put in place an investor-friendly policy, wherein except for a small negative list, most sectors are open for 100% FDI under the Automatic route. Further, the policy on FDI is reviewed on an ongoing basis,  to  ensure  that  India  remains  attractive  &  investor friendly  destination. Changes  are  made  in  the  policy  after  having  intensive  consultations  with stakeholders including apex industry chambers, Associations, representatives of  industries/groups  and  other  organizations  taking  into  consideration  their views/comments.
- (d): Government  has  also  taken  various  steps  to  improve  the  overall  business regulatory  environment  in  the  country  and  create  a  conducive  business environment  by  streamlining  the  existing  regulations  and  processes  and eliminating unnecessary requirements and procedures.

Recently, Government has taken various steps in addition to ongoing schemes to boost domestic investments in India. These include the National Infrastructure Pipeline, Reduction in Corporate Tax, easing liquidity problems of NBFCs and Banks, trade policy measures to boost domestic manufacturing. Government  of  India  has  also  promoted  domestic  manufacturing  of  goods through  the  public  procurement  order,  Phased  Manufacturing  Programme (PMP), Schemes for Production Linked Incentives of various Ministries.

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