fdi in india and its growth linkages - Department Of Industrial Policy ...

Chapter 9: Maps of Spatial Spread
of FDI-Enabled Firms
9.1 Introduction
The spatial spread of FDI-enabled firms (both services and manufacturing) is one of the major objectives of the study.
With the help of the Capitaline database, as described in Chapter 6 of the study, an attempt has been made to further
depict the spatial spread of FDI firms, both services and manufacturing, using thematic maps.
Capitaline data provided us with 503 FDI companies, of which 403 were manufacturing and 100 were service
companies. The 403 manufacturing companies comprised 1240 plants, which are spread across 306 towns in various
states of India. Similarly, 100 service companies operate through 1,257 facilities that are distributed across 381 towns in
various states. In total, the plants and facilities of FDI companies are located in 687 towns.
Using the addresses of the plants and service firms, the 1,240 plants and 1,257 facilities were arranged district-wise with
pin codes and plotted on a map of India with state boundaries to see the spatial spread of FDI-enabled firms across the
states. The Equal Ranges method was used to group the plants/facilities into district clusters before plotting them on
the map.
The Equal Ranges method is a common classification technique that provides the values of ranges to plot maps. 1 The
range values obtained from the Equal Ranges Method best represent the data values of the map.
Using the Equal Ranges Method, we plotted 10 maps (five for manufacturing firms and five for service facilities) by
super-imposing the cluster of FDI plants/facilities on a different base each time. The maps are described below and
appended to this section.
Box 1: Equal Range Method
This method establishes the minimum and maximum values of the data items. The difference
between the minimum and maximum is calculated and then divided by the number of ranges (i.e.,
5) to establish the equal range value. For example, the minimum number of persons born overseas
is 578 and the maximum number of persons born overseas is 14,547. The difference is 13,969, which
is divided by the number of ranges (i.e., 5), which equals 2793. The ranges are divided into segments
of 2,800, i.e., 500 to 3,300, 3300 to 6,100, etc.
Source: Australian Bureau of Statistics, Hints and Tips - Range Methods of Thematic Maps.
9.2 Spread of FDI-enabled Manufacturing Plants
Map 1: Spatial spread of FDI-enabled plants in India
The spatial spread of FDI-enabled plants shows that there are 1,240 plants spread across 306 cities across India. Of
these 1,240 plants, 721 plants are located in 264 Class-3 cities, 85 plants in 21 Class-2 cities and 434 plants in 21
Class-1 cities.
1. Other classification techniques include the Equal Count Method, Natural Break Method, Standard Deviation Method, and Quantile Method.
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