Lok Sabha Question No. 2255 (UNSTARRED), answered on 2016-05-06
Subject: FDI
Ministry: FINANCE
Asked by: RAKSHA NIKHIL KHADSE

## DEPARTMENT OF ECONOMIC  AFFAIRS

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE LOK SABHA

## UNSTARRED QUESTION NO. 2255 TO BE ANSWERED ON FRIDAY,  THE 6th MAY,20,16

VAISAKHA 16, 1938 (SAKA)

FDI

2255, SHRIMATI RAKSHATAI  KHADSE

Will the Minister  of FINANCE  be pleased  to state:

- (a) whether the Government has been liberalising the Foreign Direct lnvestment  (FDl)  regime  and has brought  number of sectors  under the automatic  route, if so, the details  of the sectors  requiring approval of Foreign lnvestment Promotion  Board  (FIPB); and
- (b) whether the Government analysed increase in FDI investments through this automatic  route, if so, the details  thereof?

## ANSWER

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

- (a) Governmenl  has put in place a policy framework on Foreign Direct lnvestment  (FDl), which  is transparent,  predictable  and easily comprehensible. The Department of lndustrial  Policy & Promotion (DIPP), makes policy announcements on FDI through  Press Notes/Press Releases which are notified by Reserve Bank of lndia as amendments  to the Foreign Exchange Management (Transfer or lssue of Security  of Persons  Resident  Outside lndia) Regulations,  2000.

Foreign investment  in most of the sectors  is already  under automatic  route and Government approval  is required for only few sectors which are listed in the Consolidated  FDI policy  Circular  of 2015 as amended from time to time through  Press Notes. All these are available  on the website  of Department of lndushial  Policy and Promotion (DIPP) at www.diop.nic.in ) Acts and Rules  ) Press Notes/FDl Circular.

- (b) FDI Data is compiled by DIPP.  The last five years data on FDI equity inflows under automatic route  and data on total FDI infloWs  are given  as below:

## Statement on Financlal Year Wise FDI Equity lnflows

(Amount in US$ million)

| st. No   | Financial year   | FDI equity reported through RBI Automatic route   | % Growth w.r.t. the preceding financial year   | Amount of total FDI inflows #   | % Growth w.r.t. the preceding financial year   |
|----------|------------------|---------------------------------------------------|------------------------------------------------|---------------------------------|------------------------------------------------|
| 1        | 2010-11          | 19,437.16                                         | -130k                                          | 34,847                          | (-) 08%                                        |
| 2        | 2011-12          | 32,073.72                                         | 65%                                            | 46,556                          | (+) 34%                                        |
| 2        | 2412-13          | 19,505.75                                         | -39%                                           | 34,298                          | (-)26%                                         |
| 4        | 2013-14          | 23,1 13.93                                        | 180k                                           | 36,046                          | (+) 05%                                        |
| R        | 2014-15          | 28,711.6s                                         | 24%                                            | 44,291                          | (+) 23o/o                                      |
| 6        | 2015-16          | 34,058.32 (upto Feb, 16)                          | 270k'                                          | 40,823 (upto Dec, 15)           |                                                |