Lok Sabha Question No. 2440 (UNSTARRED), answered on 2016-08-01
Subject: Status of FDI Inflow
Ministry: COMMERCE AND INDUSTRY
Asked by: HARI OM PANDEY, DUSHYANT SINGH, MD. BADARIDDOZA KHAN, K. KAMARAAJ, NARANBHAI KACHHADIA, RABINDRA KUMAR JENA, CHANDRA PRAKASH JOSHI, MOHAMMAD SALIM, MANOJ KUMAR TIWARI

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

## LOK SABHA

UNSTARRED QUESTION NO. 2440. TO BE ANSWERED ON MONDAY, THE 1 ST  AUGUST, 2016.

## STATUS OF FDI INFLOW

## 2440.  SHRI HARI OM PANDAY:

SHRI DUSHYANT SINGH:

SHRI MD. BADARUDDOZA KHAN:

DR. K. KAMARAJ:

SHRI NARANBHAI KACHHADIYA:

SHRI RABINDRA KUMAR JENA:

SHRI CHANDRA PRAKASH JOSHI:

SHRI MOHD. SALIM:

SHRI MANOJ TIWARI:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether the position  of  India  has  improved  in  "FDI  Inflow  List  of  UNCTAD" during  2016,  if  so,  the  details  thereof  including  India's  rank  in  the  world  in Foreign Direct Investment (FDI) inflow at present;
- (b) whether this new position reflects the national/global impact on the FDI inflow of the country, if so, the details thereof;
- (c) whether the Government has fixed any target for FDI in the country;
- (d) if  so,  the  details  thereof  during  the  last  three  years  and  the  current  year, sector-wise, State/UT-wise including Odisha; and
- (e) the steps taken by the Government to promote FDI in all the States across the country?

## 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): Yes Madam. The position of India has improved in 'FDI inflow list of UNCTAD'. The World Investment Report (WIR) 2016 has shown 26% rise  in  FDI  inflow.  Presently,  India  stays  on  10th  position  whereas according to WIR-2015 the ranking for the year 2013 was 15 th position.

|            | Further, India has been ranked 3rd in the list of top prospective host economies for 2016-18.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b):       | Trends in India's Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors. During the Financial Year 2015-16, the highest ever FDI inflow of US$ 55.46 billion has been received.                                                                                                                                                                                                                                                                                                                                            |
| (c) & (d): | Government does not fix targets for FDI inflows as FDI is largely a matter of private business decisions. Government of India has put in place a liberal and investor friendly FDI policy. FDI inflows depend on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors.                                                                                                                                                           |
| (e):       | Review of FDI policy is an ongoing process and significant changes are made in the FDI policy regime, from time to time, to ensure that India remains an attractive investment destination. These measures are expected to increase FDI, which complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art- technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into accelerated domestic growth of the whole country. |

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