Lok Sabha Question No. 3538 (UNSTARRED), answered on 2024-12-17
Subject: Invest India & FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Godam Nagesh

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

## LOK SABHA

UNSTARRED QUESTION NO. 3538.

TO BE ANSWERED ON TUESDAY, THE 17 TH  DECEMBER, 2024.

## INVEST INDIA & FDI

## 3538.  SHRI GODAM NAGESH:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  the  contribution  of  Invest  India  in  facilitating  Foreign  Direct Investment (FDI) as compared to the total FDI inflows received by the country;
- (b) the details of FDI facilitated by Invest India during the financial year 2023-24;
- (c) the details of FDI facilitated by Invest India during the first six months of financial year 2024-25 (April-September 2024);
- (d) whether the Government maintains data to evaluate the actual conversion rate of investment facilitation provided by Invest India into real FDI inflows; and
- (e) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): Invest  India,  a  National  Investment  Promotion and  Facilitation Agency  was formed in 2009 under Section 25 of the Companies Act 1956 for promotion of foreign investment with 49% equity of the then Department of Industrial Policy and Promotion, Ministry of Commerce and Industry and 51% shareholding by FICCI.  The  current  shareholding  pattern  of  Invest  India  is  51%  of  Industry Associations  (i.e.  17%  each  of  FICCI,  CII  &  NASSCOM)  and  49%  of Government of India. As on date, DPIIT is holding 36% and 13% shareholding is with 26 State Governments (0.5% each State).

Structured as a Section 8 company limited by shares under the Companies Act 2013, the organisation has a comprehensive approach to support India's economic growth. The purpose of setting up of Invest India is to act as a first point of reference for any Investor interested in India and provide information on issues, such as tax rates, skill availability and advantages that states have to offer, at a single point about all the states. It also undertakes promotional work and attract Investment especially by expanding global investor awareness beyond the metros.

|        | The Government has put in place an investor friendly FDI policy with a view to attract FDI, wherein most of the sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. Almost 90% of the FDI inflow is received under the automatic route. India continues to open up its economy to global investors by raising FDI limits, removing regulatory barriers, developing infrastructure and improving business environment.                                                                                                                                                                                                                                                                  |
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| & (c): | In FY 2023-24, Invest India facilitated projects totalling an indicative investment of USD 2.4 Billion, of which USD 2.025 Billion is attributed to Foreign Direct Investments. These investments involved 18 foreign companies across 10 Indian states, spanning various sectors, including Textiles, Electronics, Medical Devices, and Energy. During the first half of FY 2024-25 (April-September 2024), total FDI recorded is USD 42.10 Billion which includes FDI equity inflow of USD 29.8 Billion. During the same period, Invest India facilitated 9 Foreign Direct Investment projects with a projected FDI inflow of USD 500 Million (based on company declarations) spanning across seven key sectors namely Automotive, IT-BPM, |
| & (e): | FDI inflows are only recorded when actual funds are transferred. Investment figures provided are based on company declarations and are subject to realisation over the project lifecycle across multiple years. The Reserve Bank of India and the Foreign Investment Facilitation Portal track the actual investment flows.                                                                                                                                                                                                                                                                                                                                                                                                                  |

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