Lok Sabha Question No. 1054 (UNSTARRED), answered on 2016-07-22
Subject: Investment by Foreign Investors
Ministry: FINANCE
Asked by: RAM KUMAR SHARMA KUSHWAHA, JANARDAN SINGH SIGRIWAL

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT  OF ECONOMIC  AF'FAIRS LOK SABHA UNSTARRED  QUESTION  NO. 1054 TO BE ANSWERED ON FRIDAY, THE 22ND JULY,2016 ASHADHA 31, 1938 (SAKA)

## Investment by F oreign Investors

## 1054. SHRI RAM KUMARSIIARMA: SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of FINANCE be pleased  to state:

- (a) whether any assessment has been made of sectors which have been benefited largely through Foreign Direct lnvestment  (FDD, if so, the sector-wise route and channel-wise  break-ups  thereof for each ofthe  last three years and the current  year;
- (c) if so, the details of proposals  cleared  so far and amount of interest  flowed  into the country  during the same period; and
- (b) whether the Govemment has allowed  automatic  approval  route  to FDI in Defence,  Pharmaceutical, Aviation,  Food retailing,  Broadcast  sector in the country;
- (d) the measures  taken or proposed to be taken in the matter?

## ANSWER

## Minist€r  of State in the Ministry of Finance  (SHRI  ARJUN RAM MEGHWAL)

(a) FDI data on sector wise, which manifests  sectors  attracting higher FDI, is available on the web site of Department of Lidustrial Policy & Promotion  (DIPP)  -  www.dipp.gov.in. The statement  on FDI equity inflows  route  /channel  wise  - on automatic  route and approval  route  is as below:

Amount in US $ million, in round  fi re

|        |                            | $                   | $              | $      |
|--------|----------------------------|---------------------|----------------|--------|
| Sl. No | Financial Year             | RBI Automatic route | Approval route | Total  |
| 1      | 2013-14                    | 23,114              | 1,185          | 24,299 |
| z      | 2014-15                    | 28,712              | 2,219          | 30 931 |
| 3      | 2015- 16                   | 36,421              | 3,57 4         | 40,00I |
| 4      | 2016-11 ( up to May, 2016) | 4,763               | 582            | 5 145  |

(b) and (d) The Govemment reviews Foreign Direct lnvestment (FDI) policy from time to time, and significant  changes  are made  in the FDI policy on different  sectors  to ensure  that India remains  increasingly attractive and investor-friendly  investment  destination.  Recently,  the Govemment  has amended entry  routes and/or FDI caps in various sectors including Defence, Pharmaceutical,  Aviation,  Food  retailing, Broadcast sector through  the Press Note No. 5 (2016 Series) dated June 24,2016,  which  is available  on the web site www.di ov.in -> Acts and Rules -> Press Notes/FDI  Circular

(c)  FDI equity inflows on financial year wise (April  to March) for each of the last three  years  and the current  year  in Defence,  Pharmaceutical,  Aviation, Broadcast  sector  arc as below:

(ln US $ million)

| sl. No   | Sector                                             | 2013-14   | 2014-ts   |               |   2016- 17 (up to May z}t6) |
|----------|----------------------------------------------------|-----------|-----------|---------------|-----------------------------|
| I        | Defence Industries                                 | 0.82      | 0.08      | 0.10 lzors-ro |                        0    |
| 2        | Drugs and Pharmaceuticals                          | I,219.34  | 1,491 .14 | 7 54.26       |                      452.86 |
| 3        | Air Transport (lncluding Air Freight)              | 45.9s     | 74.56     | 361.25        |                        5.65 |
| 4        | Information & Broadcasting (including print media) | 428.52    | 254.96    | 1,009.34      |                       39.2  |
| 5.*      | Retail Trading                                     | I 1.30    | 168.72    | 262.24        |                        7.94 |