Lok Sabha Question No. 3758 (UNSTARRED), answered on 2025-03-24
Subject: Foreign Exchange Inflow in Bihar and Uttar Pradesh
Ministry: FINANCE
Asked by: Dr. Alok Kumar Suman

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

## LOK SABHA UNSTARRED QUESTION NO. 3758

TO BE ANSWERED ON 24.03.2025

## FOREIGN EXCHANGE INFLOW IN BIHAR AND UTTAR PRADESH

## 3758. Dr. Alok Kumar Suman:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  it  is  fact  that  the  foreign  exchange  inflow  through  remittances,  investments  or other channels are an important indicator of economic activities and significantly contribute to the developmental works of the State of Bihar and Uttar Pradesh;
- (b) if so, the details thereof;
- (c) the details of foreign exchange inflow in districts Gopalganj, Siwan, Saran, East and West Champaran of the State of Bihar and in Deoria and Kushinagar districts of Uttar Pradesh;
- (d) the details of the volume of foreign remittances received during the last ten years in the above said districts;
- (e) the details of the contribution in foreign exchange inflow of Non-Resident Indians (NRIs) or Overseas Citizens of the country in the above said districts; and
- (f) whether these foreign exchange inflow are used for the development of the said districts, if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  and  (b):  Foreign  exchange  inflows  through  various  channels,  such  as  foreign  direct investment  (FDI),  foreign  portfolio  investment  (FPI),  and  remittances,  etc.  contribute  to economic activity in the country.  In general, foreign investments contribute to the State-level development  by  improving  the  competitiveness  of  the  recipient  sectors.  FDI  results  in enhanced economic activity through the transfer of capital, technical know-how and skills. According to India's Balance of Payments, the gross inward remittances to India stood at US Dollar (USD) 118.7 billion.  The Reserve Bank of India's (RBI) survey on remittances for the year 2023-24 shows that the shares of Uttar Pradesh and Bihar in India's inward remittances are 3.0 per cent and 1.3 per cent, respectively.

Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and other capital. Country/Sector/State/District-wise data is maintained only for the equity component of FDI inflow. The cumulative FDI equity inflow over the period October 2019 to  December, 2024,  into  Uttar  Pradesh  and  Bihar  is  USD  1941.82  million  and  USD 215.76 million, respectively.

- (c) The FDI equity inflow data, district-wise, is given below.

| (in USD million)   | (in USD million)                 | (in USD million)         | (in USD million)   | (in USD million)   | (in USD million)   | (in USD million)   | (in USD million)   |
|--------------------|----------------------------------|--------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| S. No.             | District Name                    | 2019-20 (From OCT 2019)^ | 2020-21            | 2021-22            | 2022-23            | 2023-24            | Cumulative FDI     |
| 1                  | East Champaran (Motihari), Bihar | 0.11                     | 0.14               | 0.02               | -                  | -                  | 0.27               |
| 2                  | West Champaran (Bettiah), Bihar  | -                        |                    | -                  | 0.001              | 0.001              | 0.002              |

Source: Department for Promotion of Industry and Internal Trade

No FDI equity inflow have been reported in the districts of Gopalganj, Siwan and Saran of Bihar and Deoria and Kushinagar of Uttar Pradesh.

- (d) and (e): District-wise data of foreign remittances is not available from the RBI's survey on remittances.
- (f):  As per reply to parts (a) and (b) above.

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