Lok Sabha Question No. 1161 (UNSTARRED), answered on 2015-12-07
Subject: FDI Inflow
Ministry: COMMERCE AND INDUSTRY
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU, INNOCENT

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1161. TO BE ANSWERED ON MONDAY, THE 7 TH  DECEMBER, 2015.

## FDI INFLOW

## 1161. SHRI P.K. BIJU: SHRI INNOCENT:

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

## वाणिज् यवव द्यग ं ्री

- (a) the  total  funds  invested  by  the  foreign  companies  including  Non-Resident Indians (NRIs) during the last three years and the current year and the targets fixed for Foreign Direct Investment (FDI) inflow during the said period;
- (b) the number of foreign companies/ entrepreneurs allowed to set up industries in  the  country  along  with  the  number  of  foreign  companies  banned  from making investment during the said period and the reasons therefor;
- (c) whether it has been recently reported by a global consultancy firm that India is the most favoured destination for foreign investment in the world and if so, the details thereof;
- (d) whether  the  Government  proposes  to  review  FDI  norms  to  attract  foreign investment  and  also  to  give  special  concession  to  investment  by  NRIs  in various sectors under the FDI scheme; and
- (e) if  so,  the  details  thereof,  along  with  review/study,  if  any,  conducted  by  the Government to encourage investment by NRIs in the country and if so, the outcome thereof?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

(a): The  total  Foreign  Direct  Investment  (FDI)  including  Non-Resident Indian  (NRI)  investments  during  the  last  three  years  and  the  current financial year (up to September, 2015) is as under :

P - Provisional

|   Sl. No. | Financial Year                     | Total FDI inflow (in US$ million)   |
|-----------|------------------------------------|-------------------------------------|
|         1 | 2012-13 (P)                        | 34,298                              |
|         2 | 2013-14 (P)                        | 36,046                              |
|         3 | 2014-15 (P)                        | 44,291                              |
|         4 | 2015-16 (P) (upto September, 2015) | 24,409                              |

|             | Government does not fix targets for FDI inflows as FDI is largely a matter of private business decisions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b):        | Data in this regard is not maintained centrally. Investment by foreign companies in the country is governed by the FDI policy as well as the sectoral laws, regulations and policies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (c):        | In November, 2015 a global consultancy firm namely Ernst & Young (EY) India conducted the India Attractiveness Survey 2015, where they had taken responses of 505 investors on three most attractive markets for investment. On the basis of response received from these investors and data provided by FDI Markets (a service of The Financial Times Limited), India ranked number one FDI destination in the world during the 1 st half of 2015.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ( d )& (e): | Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), including investments from Non- Resident Indians (NRIs), where most of the sectors are open to FDI under the automatic route. The extant policy allows special dispensation for NRI investments in construction development and civil aviation sector. Further, investment made by Non-Resident Indians under schedule 4 of FEMA (Transfer or issue of Security by Persons Resident Outside India) Regulations is deemed to be domestic investment at par with the investment made by residents. In order to attract larger investments, which are possible through incorporated entities only, the special dispensation of NRIs has been extended to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs. Henceforth, such entities owned and controlled by NRIs will be treated at par with NRIs for investment in India. |

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