Lok Sabha Question No. 839 (UNSTARRED), answered on 2015-07-24
Subject: Foreign and Domestic Investments
Ministry: FINANCE
Asked by: JASVANTSINH SUMANBHAI BHABHOR, RAM TAHAL CHOUDHARY

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

## LOK SABHA UNSTARRED QUESTION  NO. 839 TO BE ANSWERED ON FRIDAY, THE 24h JULY, 2015

SHRAVAN  A2,1937 (SAKA)

## Foreign and Domestic lnvestments

839. Shri Jasvantsinh Sumanbhai Bhabhor,

Shri Ram Tahal Choudhary,

Willthe Minister  of FINANCE be pleased  to state

- (a) the details of foreign and domestic investment  made in the country  during the last three years and the current  year;
- (b) whether Government has adequate measures/ propose  to take measures  to boost the aforesaid investments in various sectors including  infrastructure sector; and
- (c) if so, the details  thereof along with other steps being taken in this regard?

## ANSWER

## Minister of State in the Ministry of FINANCE (SHRI  JAYANT SINHA)

- (a) The details of inflow of Foreign Direct lnvestment (FDl) Equity inflows  during each of the last three years and current  year is as follows

|    |                          | INR Crores   |
|----|--------------------------|--------------|
| 1  | 2012-13                  | 121,906.73   |
| 2  | 2013-14                  | 147,517.78   |
| 3  | 2014-15                  | 189,107.13   |
| 4  | 2015-16 (April' 15 only) | 22,619.88    |
|    | Grand Total              | 491,151.51   |

Total net investment  by Foreign Portfolio lnvestors (FPls) during last three calendar years and current year are as follows:

## INR crores

| Sl. No.   | Calendar Year            | Total Net investment by FPls   |
|-----------|--------------------------|--------------------------------|
| 1         | 2012                     | 163,348                        |
| 2         | 2013                     | 62,287                         |
| 3         | 2014                     | 256,210                        |
| 4         | 2015 (Upto Juty 20,2o1s) | 84,929                         |
|           | Total                    | 566,774                        |

However,  Government does not maintain  specific  data on domestic investments.

',,

(c) Yes, Sir. The Government has taken several measures to boost investment in

(b) & various sectors including infrastructure  sector. Foreign  Direct lnvestment  (FDl) policy is reviewed  on an ongoing basis, with a view to making  it more investor  friendly. Government makes significant changes in the FDI policy regime from time to time, to ensure that lndia remains an attractive destination. All such policy decisions are available on the website of Department  of lndustrial Policy & Promotion  (DIPP) (www.dipp.nic.in).

Securities and Exchange Board of lndia (SEBI) had notified the SEBI Foreign Portfolio lnvestors  (FPl) Regulations on January  07,2014 with the objective of facilitating foreign investment and rationalizing various  foreign portfolio investment routes,  simplifying the procedures and prescribe uniform registration, norrns for entry of foreign  portfolio investors. SEBI has also notified SEBI (lnfrastructure lnvestment Trusts) Regulations, 2014, in September, 2014 for providing a frarnework  for registration and regulation of lnfrastructure  lnvestment  Trusts (lnvlTs)  in lndia and Real Estate lnvestment Trusts (RElTs). These structures are expected to provide a significant boost to the investments  in infrastructure  sector and real estate  sector respectively,  in lndia.

Vide Press Note No. 7 t2015 dated 3'd June 2015 issued by Department of lndustrial  Policy & Promotion,  the Government has announced that Non-Resident  lndian (NRl) investment  on Non-repatriation basis, under schedule 4 of Foreign Exchange Management (Transfer  or lssue of Security by Person Resident Outside lndia) would be treated  as domestic investment. This step will encourage NRI investment on Nonrepatriation basis in lndia.

ln the Union Budget 2015-16,  the emphasis  is on substantially  increasing  public investment. The outlays for roads and railways have been increased sharply and capital expenditure by public sector units is to go up in 2015-16 over 2014-15. Overall investment in infrastructure  is to increase by Rs 70,000 crore in 2015-16 from Centre's funds and resources of central public sector enterprises. Permission has been accorded for issue of tax free infrastructure bonds for projects in the rail, road and irrigation sectors and a National  lnvestment and lnfrastructure Fund (NllF) has been announced.

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