Lok Sabha Question No. 2319 (UNSTARRED), answered on 2022-08-01
Subject: New Investment Projects
Ministry: FINANCE
Asked by: Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2319

## TO BE ANSWERED ON MONDAY, AUGUST 1, 2022/SRAVANA 10, 1944 (Saka)

## NEW INVESTMENT PROJECTS 2319. SHRI DAYANIDHI MARAN

## Will the Minister of FINANCE be pleased to state:

- ( a) whether as per media reports, new investment projects in India have declined in the first quarter of 2022-23 and if so, the details thereof;
- ( b) the details and status of capital investments in manufacturing and infrastructure;
- (c) whether the Ministry has conducted any study or analysis of the reasons contributing to the decline and if so, the details thereof;
- (d) whether  the  Ministry  has  held  any  consultations  with  the  Industry  bodies  and stakeholders on the way forward and if so, the details thereof; and
- (e) the  details  of  sectors  which  have  been  most  affected  by  the  decline  in  investments along with the steps taken by the Ministry to address their issues?

## ANSWER

## MINISTER OF STATE FOR FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a) to (e) India's recorded Foreign Direct Investment (FDI) in the last quarter of FY 2021-22 stands at USD 22,037 Million which is higher from the FDI recorded in the last Quarter of FY 2020-21 (USD 13,438 Million). A Statement indicating FDI Equity inflow reported in the sectors namely 'Manufacturing' & 'Construction (Infrastructure) activities' during last three financial years and in the current financial year i.e. 2019-20, 2020-22 and 2022-23 (up to May 2022) along with the FDI inflow for last three years is at Annexure .

To  boost  capital  investment  in  the  country  the  government  has  taken  various progressive steps over the years and eased norms to attract investment. The Government has put in place a liberal and transparent policy for attracting FDI, wherein most sectors, are open for 100% FDI under the automatic route. The Government of India reviews the FDI Policy on regular basis to ensure that India remains attractive and investor friendly destination.

***

## FDI inflow for last three financial years

|   S.No. | Financial Year   | FDI (USD million)   |   (% Growth YoY) |
|---------|------------------|---------------------|------------------|
|       1 | 2019-20          | 74,391              |             20   |
|       2 | 2020-21 (P)      | 81,973              |             10.2 |
|       3 | 2021-22 (P)      | 83,572              |              2   |

## FDI Equity inflow in Manufacturing Sectors

| S.No.   | Financial Year    | FDI equity inflow in Manufacturing Sectors   | FDI equity inflow in Manufacturing Sectors   |
|---------|-------------------|----------------------------------------------|----------------------------------------------|
|         |                   | (Amount in USD million)                      | (Amount in INR crore)                        |
| 1       | 2019-20           | 17,118.63                                    | 120,969.93                                   |
| 2       | 2020-21           | 12,093.95                                    | 89,765.96                                    |
| 3       | 2021-22           | 21,341.04                                    | 158,332.32                                   |
| 4       | 2022-23 (Apr-May) | 4,296.16                                     | 33,053.62                                    |

## FDI Equity inflows Sector Construction (Infrastructure) Activities

| S.No   | Financial Year    | FDI Equity inflow (in USD million)   | FDI Equity inflow (in INR crore)   |
|--------|-------------------|--------------------------------------|------------------------------------|
| 1      | 2019-20           | 2,041.72                             | 14,509.76                          |
| 2      | 2020-21           | 7,874.54                             | 58,239.92                          |
| 3      | 2021-22           | 3,247.51                             | 24,178.17                          |
| 4      | 2022-23 (Apr-May) | 357.83                               | 2,740.52                           |
|        | Grand Total       | 13,521.60                            | 99,668.36                          |

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Annexure