Lok Sabha Question No. 2858 (UNSTARRED), answered on 2022-08-03
Subject: FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Sumalatha Ambareesh

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

UNSTARRED QUESTION NO. 2858.

TO BE ANSWERED ON WEDNESDAY, THE 3 RD  AUGUST, 2022.

FDI

## 2858.   SHRIMATI SUMALATHA AMBAREESH:

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

- (a) whether  it  is  true  that  the  Government  has  not  achieved  its  target  set  for investment inflows into India via Foreign Direct Investments (FDIs);
- (b) if  so,  the  details  for  the  last  five  years  till  date;  sector-wise,  including infrastructure sectors;
- (c) whether the Government has taken adequate measures to attract FDIs into India;
- (d) if so, the details thereof; and
- (e) the details of the share of FDIs to the GDP of the country in the last five 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) & (b) : Government does not fix targets for FDI inflows as FDI is largely a matter of commercial business decisions. FDI inflows into a country depends on a host of factors such as availability of natural resources, market size, infrastructure,  political  and  general  investment  climate  as  well  as  the macro-economic stability and investment decision of foreign investors. The details of FDI equity inflow for various sectors, including infrastructure sectors, for the last five years till date are at Annexure -I.
- (c) & (d) : 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. Further, the policy on FDI is reviewed on an ongoing basis,  to  ensure  that  India  remains  an  attractive  &  investor  friendly destination and 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.  In  the  recent  past,  reforms  in  the FDI  policy

have  been  undertaken  in  sectors  such  as  Insurance,  Petroleum  & Natural Gas and Telecom etc.

- (e): The details of share of FDI to GDP of the country in the last five years are as under:

| Financial Year   |   Gross FDI* to GDP (%) |
|------------------|-------------------------|
| 2017-18          |                     2.3 |
| 2018-19          |                     2.3 |
| 2019-20          |                     2.6 |
| 2020-21          |                     3.1 |
| 2021-22          |                     2.7 |

*Gross FDI inflows include equity, reinvested earnings and other capital as published in India's balance of payments statistics.

Sources: Reserve Bank of India and Ministry of Statistics and Programme Implementation.

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## ANNEXURE - I ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 2858 FOR ANSWER ON 3 RD  AUGUST, 2022.

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOW FROM APRIL 2017 TO MAY 2022

(Amount in USD million)

|   Sl No | Sector                                             | 2017-18 Apr-Mar   | 2018-19 Apr-Mar   | 2019-20 Apr-Mar   | 2020-21 Apr-Mar   | 2021-22 Apr-Mar   | Total     |
|---------|----------------------------------------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-----------|
|       1 | METALLURGICAL INDUSTRIES                           | 371.76            | 598.84            | 2,100.65          | 1,340.47          | 2,272.35          | 6,684.07  |
|       2 | MINING                                             | 36.41             | 223.58            | 199.23            | 168.77            | 344.61            | 972.60    |
|       3 | POWER                                              | 1,621.00          | 1,105.64          | 672.16            | 373.63            | 525.66            | 4,298.09  |
|       4 | NON-CONVENTIONAL ENERGY                            | 1,204.46          | 1,446.16          | 1,393.39          | 797.21            | 1,600.93          | 6,442.15  |
|       5 | PETROLEUM & NATURAL GAS                            | 24.18             | 138.43            | 805.76            | 102.81            | 56.41             | 1,127.59  |
|       6 | BOILERS AND STEAM GENERAT ING PLANTS               | 68.13             | 0.01              | 0.08              | 0.90              | 0.00              | 69.12     |
|       7 | PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)     | 159.06            | 244.92            | 85.35             | 279.97            | 25.08             | 794.38    |
|       8 | ELECTRICAL EQUIPMENTS                              | 488.72            | 976.50            | 571.39            | 1,411.95          | 683.70            | 4,132.26  |
|       9 | COMPUTER SOFTWARE & HARDWARE                       | 6,153.20          | 6,415.21          | 7,673.32          | 26,144.69         | 14,461.35         | 60,847.77 |
|      10 | ELECTRONICS                                        | 196.87            | 451.88            | 422.36            | 375.31            | 417.00            | 1,863.42  |
|      11 | TELECOMMUNICATIONS                                 | 6,211.84          | 2,667.91          | 4,445.16          | 392.11            | 668.14            | 14,385.16 |
|      12 | INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA) | 638.67            | 1,252.36          | 823.40            | 313.89            | 152.27            | 3,180.59  |
|      13 | AUTOMOBILE INDUSTRY                                | 2,089.53          | 2,623.22          | 2,824.03          | 1,637.44          | 6,993.55          | 16,167.77 |
|      14 | AIR TRANSPORT (INCLUDING AIR FREIGHT)              | 628.53            | 190.64            | 918.30            | 204.10            | 584.83            | 2,526.40  |
|      15 | SEA TRANSPORT                                      | 1,051.49          | 279.25            | 198.58            | 294.20            | 393.81            | 2,217.33  |
|      16 | RAILWAY RELATED COMPONENTS                         | 98.54             | 72.19             | 138.32            | 119.64            | 1.26              | 429.95    |
|      17 | INDUSTRIAL MACHINERY                               | 462.82            | 338.18            | 424.63            | 253.33            | 320.66            | 1,799.62  |
|      18 | MACHINE TOOLS                                      | 45.16             | 44.93             | 28.83             | 20.91             | 31.23             | 171.06    |
|      19 | AGRICULTURAL MACHINERY                             | 17.20             | 5.78              | 102.31            | 142.59            | 268.73            | 536.61    |
|      20 | EARTH-MOVING MACHINERY                             | 29.18             | 34.16             | 14.08             | 39.39             | 60.60             | 177.41    |
|      21 | MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES  | 106.42            | 162.67            | 54.36             | 64.10             | 411.17            | 798.72    |
|      22 | COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS          | 20.97             | 11.78             | 2.65              | 47.25             | 17.24             | 99.89     |
|      23 | MEDICAL AND SURGICAL APPLIANCES                    | 87.23             | 156.72            | 308.71            | 68.91             | 208.05            | 829.62    |
|      24 | INDUSTRIAL INSTRUMENTS                             | 2.28              | 1.62              | 8.32              | 0.70              | 0.11              | 13.03     |
|      25 | SCIENTIFIC INSTRUMENTS                             | 5.53              | 3.15              | 23.23             | 9.42              | 7.57              | 48.90     |
|      26 | FERTILIZERS                                        | 26.68             | 86.73             | 9.12              | 17.89             | 6.07              | 146.49    |
|      27 | CHEMICALS (OTHER THAN FERTILIZERS)                 | 1,307.90          | 1,980.99          | 1,057.51          | 847.07            | 965.78            | 6,159.25  |
|      28 | DYE-STUFFS                                         | 0.00              | 1.52              | 5.14              | 4.44              | 2.94              | 14.04     |
|      29 | DRUGS & PHARMACEUTICALS                            | 1,009.96          | 265.97            | 517.79            | 1,490.49          | 1,414.24          | 4,698.45  |
|      30 | TEXTILES (INCLUDING DYED, PRINTED)                 | 454.45            | 198.14            | 323.52            | 298.67            | 247.75            | 1,522.53  |
|      31 | PAPER AND PULP (INCLUDING PAPER PRODUCTS)          | 71.17             | 38.00             | 49.96             | 22.42             | 158.48            | 340.03    |
|      32 | SUGAR                                              | 7.90              | 1.10              | 0.46              | 24.94             | 0.55              | 34.95     |
|      33 | FERMENTATION INDUSTRIES                            | 38.48             | 149.49            | 313.67            | 84.77             | 869.52            | 1,455.93  |
|      34 | FOOD PROCESSING INDUSTRIES                         | 904.90            | 628.24            | 904.70            | 393.41            | 709.71            | 3,540.96  |
|      35 | VEGETABLE OILS AND VANASPATI                       | 85.12             | 116.22            | 79.97             | 44.97             | 5.85              | 332.13    |
|      36 | SOAPS, COSMETICS & TOILET PREPARATIONS             | 137.03            | 154.09            | 99.05 81.21       | 103.53            | 548.89            | 1,042.59  |
|      37 | RUBBER GOODS                                       | 392.21            | 197.64            |                   | 265.94            | 70.73             | 1,007.73  |

|   38 | LEATHER,LEATHER GOODS AND PICKERS                                                                                     | 22.00    | 4.52     | 12.60    | 8.89     | 7.15     | 55.16     |
|------|-----------------------------------------------------------------------------------------------------------------------|----------|----------|----------|----------|----------|-----------|
|   39 | GLUE AND GELATIN                                                                                                      | 3.76     | 13.29    | 2.76     | 0.74     | 4.56     | 25.11     |
|   40 | GLASS                                                                                                                 | 70.92    | 35.59    | 24.01    | 42.36    | 588.22   | 761.10    |
|   41 | CERAMICS                                                                                                              | 50.12    | 58.09    | 2.83     | 20.61    | 1.34     | 132.99    |
|   42 | CEMENT AND GYPSUM PRODUCTS                                                                                            | 19.44    | 17.61    | 5.10     | 3.78     | 204.41   | 250.34    |
|   43 | TIMBER PRODUCTS                                                                                                       | 9.91     | 7.75     | 12.62    | 5.89     | 20.45    | 56.62     |
|   44 | DEFENCE INDUSTRIES                                                                                                    | 0.01     | 2.18     | 2.20     | 0.63     | 2.36     | 7.38      |
|   45 | CONSULTANCY SERVICES                                                                                                  | 759.67   | 410.61   | 1,046.80 | 938.44   | 1,150.40 | 4,305.92  |
|   46 | SERVICES SECTOR (Fin.,Banking ,Insurance,Non Fin/Business, Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other) | 6,708.58 | 9,157.54 | 7,853.58 | 5,060.22 | 7,131.44 | 35,911.36 |
|   47 | HOSPITAL & DIAGNOSTIC CENTRES                                                                                         | 708.09   | 1,044.61 | 634.73   | 501.16   | 697.50   | 3,586.09  |
|   48 | EDUCATION                                                                                                             | 285.75   | 776.73   | 766.15   | 1,250.37 | 3,228.68 | 6,307.68  |
|   49 | HOTEL & TOURISM                                                                                                       | 1,131.97 | 1,075.75 | 2,937.79 | 368.96   | 729.08   | 6,243.55  |
|   50 | TRADING                                                                                                               | 4,348.13 | 4,462.13 | 4,573.82 | 2,608.22 | 4,537.59 | 20,529.89 |
|   51 | RETAIL TRADING                                                                                                        | 223.78   | 442.83   | 471.84   | 1,338.07 | 497.13   | 2,973.65  |
|   52 | AGRICULTURE SERVICES                                                                                                  | 110.19   | 88.76    | 52.19    | 117.10   | 258.47   | 626.71    |
|   53 | DIAMOND,GOLD ORNAMENTS                                                                                                | 233.03   | 29.15    | 18.87    | 13.83    | 22.22    | 317.10    |
|   54 | TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER)                                                             | 20.02    | 13.64    | 6.88     | 8.65     | 3.09     | 52.28     |
|   55 | PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)                                                                 | 228.40   | 549.80   | 374.30   | 81.21    | 316.95   | 1,550.66  |
|   56 | CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES                                                                              | 2,729.69 | 2,258.00 | 2,041.72 | 7,874.54 | 3,247.51 | 18,151.46 |
|   57 | CONSTRUCTION DEVELOPMEN T: Townships, housing, built-up infrastructure and construction- development projects         | 539.57   | 213.15   | 616.54   | 422.09   | 124.99   | 1,916.34  |
|   58 | MISCELLANEOUS INDUSTRIES                                                                                              | 398.76   | 440.46   | 839.00   | 767.52   | 492.91   | 2,938.65  |

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