FDI inflows up by record 92%:
Minister of Commerce & Industry Mr. Kamal Nath
(New Delhi: October 6, 2006)
Inflows of foreign direct investment (FDI) into India (equity capital components only) during the first four months of the current financial year 2006-07 (April-July), was US $ 2.9 billion compared to US$ 1.5 billion in the same period of 2005-06, showing a record increase of nearly 92%. FDI inflows (equity capital components only) during the month of July 2006 surged by a record 259%, having increased to US $ 1163 million from US $ 324 million in July 2005. This was indicated by Mr. Kamal Nath, Union Minister of Commerce & Industry, at a news briefing here today.
What is significant is that FDI inflows into the manufacturing sector and sectors impacting the manufacturing sector continue to show a record growth. FDI equity inflows into manufacturing alone in April-July 2006-07 is estimated at US $ 668.41 million, Mr. Kamal Nath said while pointing out that some of the services sector like design and engineering, air / sea transport, ports, construction activities etc. have a bearing on the growth of the manufacturing sector. The FDI policy rationalisation and liberalisation measures have resulted in the increased inflows into such sectors as well, he said.
(NB: Manufacturing refers to all industrial activities except power, water supply and mining).
According to the details available upto July 2006, the 10 sectors attracting highest FDI into India since 1991 are: electrical equipments (including computer software & electronics); services sector (financial & non-financial); telecommunications (radio paging, cellular mobile, basic telephone services); transportation industry; fuels (power + oil refinery); chemicals (other than fertilisers); food processing industries; drugs & pharmaceuticals; cement and gypsum products; and metallurgical industries.
The 10 top investing countries are: Mauritius, USA, Japan, Netherlands, UK, Germany, Singapore, France, South Korea and Switzerland.
The single largest inflow received in the current financial year to the tune of US$ 380 million has been brought in by Barclays Bank PLC, Singapore in the financial service sector. This has been received in the month of July 2006. Other major investors include Global Communication Services Holdings, Mauritius in Aircel Ltd. (Telecom services); SIERO Investment Holding, Mauritius in Orange Realty P Ltd. (Real Estate); Flextronics (Computer Software); Aspen Pharmacare Holdings Ltd., South Africa (Drugs &Pharma).
According to the Reserve Bank of India (RBI)’s revised data as per international practices, (i.e., including equity plus reinvested earnings and other capital) cumulative total FDI inflows into India from August 1991 to June 2006 were US$ 50.1 billion.