Lok Sabha Question No. 5423 (UNSTARRED), answered on 2023-04-05
Subject: FDI Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: Upendra Singh Rawat

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

## LOK SABHA

## UNSTARRED QUESTION NO. 5423. TO BE ANSWERED ON WEDNESDAY, THE 05 TH  APRIL, 2023.

## FDI POLICY

## 5423.  SHRI UPENDRA SINGH RAWAT:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government is making any FDI policy user friendly;
- (b) if so, the details thereof, State/UT-wise;
- (c) if not, the reasons therefor; and
- (d) the response received so far?

## 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): Yes,  Government  has  put  in  place  an  investor  friendly  Foreign  Direct Investment (FDI) 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 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):   | FDI Policy is an enabling policy which is uniformly applicable across the country. The State/UT-wise information on FDI inflow is maintained only for FDI equity inflow w.e.f. October, 2019. State/UT-wise information is not maintained for other components of total FDI inflow viz. equity capital of unincorporated bodies, reinvested earnings and other capital. Details of State-wise FDI Equity Inflow from October 2019 to December 2022 is placed at Annexure.   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c):   | Does not arise                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (d):   | Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflow into the country. FDI in India has been growing significantly since financial year 2014-15. From USD 36.05 billion in 2013- 14, highest ever annual FDI Inflow of USD 84.84 billion (provisional) was registered during the financial year 2021-22.                                                          |

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## ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA USTARRED QUESTION NO. 5423 FOR ANSWER ON 05.04.2023

| STATE-WISE FDI EQUITY INFLOWFROM October 2019 TO December 2022   | STATE-WISE FDI EQUITY INFLOWFROM October 2019 TO December 2022   | STATE-WISE FDI EQUITY INFLOWFROM October 2019 TO December 2022   |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| Sr. No.                                                          | State Name Amount of FDI Equity Inflow (In USD                   | %age with Inflow                                                 |
| 1 2                                                              | Million) 3                                                       | 4                                                                |
| 1MAHARASHTRA                                                     | 49,930.32                                                        | 27.89                                                            |
| 2KARNATAKA                                                       | 42,804.05                                                        | 23.91                                                            |
| 3GUJARAT                                                         | 31,328.10                                                        | 17.50                                                            |
| 4DELHI                                                           | 23,772.77                                                        | 13.28                                                            |
| 5TAMIL NADU                                                      | 8,222.97                                                         | 4.59                                                             |
| 6HARYANA                                                         | 7,232.71                                                         | 4.04                                                             |
| 7TELANGANA                                                       | 4,522.93                                                         | 2.53                                                             |
| 8JHARKHAND                                                       | 2,656.02                                                         | 1.48                                                             |
| 9RAJASTHAN                                                       | 1,932.89                                                         | 1.08                                                             |
| 10WEST BENGAL                                                    | 1,272.40                                                         | 0.71                                                             |
| 11UTTAR PRADESH                                                  | 1,250.37                                                         | 0.70                                                             |
| 12PUNJAB                                                         | 895.18                                                           | 0.50                                                             |
| 13KERALA                                                         | 759.99                                                           | 0.42                                                             |
| 14ANDHRA PRADESH                                                 | 759.91                                                           | 0.42                                                             |
| 15MADHYA PRADESH                                                 | 521.36                                                           | 0.29                                                             |
| 16BIHAR                                                          | 214.43                                                           | 0.12                                                             |
| 17HIMACHAL PRADESH                                               | 180.45                                                           | 0.10                                                             |
| 18 DADRA AND NAGAR HAVELI AND DAMAN AND DIU                      | 167.61                                                           | 0.09                                                             |
| 19ODISHA                                                         | 156.54                                                           | 0.09                                                             |
| 20GOA                                                            | 130.11                                                           | 0.07                                                             |
| 21UTTARAKHAND                                                    | 126.81                                                           | 0.07                                                             |
| 22CHANDIGARH                                                     | 75.78                                                            | 0.04                                                             |
| 23PUDUCHERRY                                                     | 63.30                                                            | 0.04                                                             |
| 24State Not Indicated                                            | 28.27                                                            | 0.02                                                             |
| 25ASSAM                                                          | 20.43                                                            | 0.01                                                             |
| 26ARUNACHAL PRADESH                                              | 5.55                                                             | 0.00                                                             |
| 27CHHATTISGARH                                                   | 2.19                                                             | 0.00                                                             |
| 28MEGHALAYA                                                      | 1.10                                                             | 0.00                                                             |
| 29JAMMU AND KASHMIR                                              | 1.07                                                             | 0.00                                                             |
| 30TRIPURA                                                        | 0.56                                                             | 0.00                                                             |
| 31LADAKH                                                         | 0.22                                                             | 0.00                                                             |
| 32NAGALAND                                                       | 0.01                                                             | 0.00                                                             |
| Gross-Total                                                      | 179,036.38                                                       |                                                                  |

*Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and other capital. Sector/State/Country-wise details are maintained only for equity component of FDI inflow.

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