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

More documents

Recommendations

Info

Findings � About half the total output of FDI-enabled manufacturing firms originates in Class-3 cities � 48% of value-added originates in Class-3 cities � 45% of the payments to employees originates in small cities � The share of Class-3 cities in total output, value-added and employee cost is relatively high in sectors including nonmetallic mineral products; building and construction parts; mining of iron ores; textiles; and growing and processing of crops � The overall share of value-added in output in FDI-enabled manufacturing firms is 18% � The share of value-added in output is relatively high in sectors including software and publishing; mining of iron ore; growing and processing of crops; non-metallic mineral products; special purpose machinery; tobacco products; and footwear � The share of value-added to output is relatively high in Andhra Pradesh, Gujarat and Karnataka � The overall share of employee cost in value-added in FDI-enabled manufacturing firms is 29% � The share of employee cost in value-added is relatively high in software and publishing; footwear; basic chemicals; textiles; and domestic appliances Conclusions About half the total output, valued-added and wages paid in the FDI-enabled manufacturing firms originate in Class- 3 cities. Class-3 cities account for relatively high shares of output, value-added and wages paid in sectors including nonmetallic mineral products; building and construction parts; mining of iron ores; textiles; and growing and processing of crops. The share of value-added in output is relatively high in sectors including software and publishing; mining of iron ores; growing and processing of crops; non-metallic mineral products; special purpose machinery; tobacco products; and footwear. 4. Analysis of FDI inflows and their impact on rural activities with special emphasis on employment-generating effects: To analyse the impact of FDI in various rural activities especially in the sectors of agriculture and food processing, and to assess the positive and negative impact of employment through FDI-enabled production activities Findings � More than 40% of the market capitalisation originates in Class-3 cities KEY FINDINGS AND SALIENT CONCLUSIONS � More than 50% of the total FDI-enabled manufacturing sectors’ employment of 15,64,920 persons originates in small cities � Sectors providing a relatively high share of employment in Class-3 cities include transport equipment; growing and processing of crops; construction parts; textiles; and non-metallic mineral products � For other details, refer to the findings of Section 3 above Conclusions More than two-fifth of the market capitalisation originates in Class-3 cities. FDI-enabled firms in manufacturing sectors provide employment to about 15.6 lakh persons, accounting for about 4 to 5% of the total employment in the organised sector. Class-3 cities provide employment to about 7.9 lakh workers (more than 50% of the total). Sectors providing a relatively high share of employment in Class-3 cities include transport equipment; growing and processing of crops; construction parts; textiles; and non-metallic mineral products. 5. Labour and capital intensity: To identify FDI-enabled sectors by their levels of skill, scale, capital and labour requirements and compare these features with the domestically invested production facilities producing similar products 135
FDI IN INDIA AND ITS GROWTH LINKAGES and services and provide comprehensive documentation of FDI-enabled production facilities by their labour and capital requirements. Findings � Net fixed capital per plant is Rs. 81 crore in Class-3 cities; Rs. 57 crore in others � Market capitalisation per plant is Rs. 466 crore in Class-3 cities; Rs. 381 crore in others � Value-added per plant is Rs. 50 crore in Class-3 cities; Rs. 38 crores in others � Employee cost per plant is Rs. 14 crore in Class-3 cities; Rs. 12 crore in others � Output per plant is Rs. 286 crore in Class-3 cities; Rs. 206 crore in others � Employment per plant is 2,058 in Class-3 cities; 1,243 in others Conclusions Class-3 cities have relatively high scale, market capitalisation, value-added, wages paid, output and employment per plant vis-à-vis medium and large cities. The information on skill composition of workers employed in manufacturing plants is not available. 6. Comparative performance: To compare the efficiency of MNC affiliates established in India with firms under their parent companies operating outside India and their profit levels. To make similar comparisons between FDI-enabled production facilities in a sector with domestically invested production facilities in the same sector Findings � Data for comparison with firms of the parent companies located out of India is not available � Employee cost per rupee of net fixed capital is 19 paise in FDI-enabled manufacturing firms and 15 paise in domestically invested firms � Employee cost per rupee of net fixed capital in FDI-enabled manufacturing firms is relatively high in sectors including footwear; medical appliances; electricity distribution and control apparatus; general purpose machinery; and building of construction parts � Ratio of output to net fixed capital is 3.55 in FDI-enabled manufacturing firms and 2.92 in domestically invested firms � Ratio of output to net fixed capital is significantly high in FDI-enabled sectors including medical appliances; electricity distribution and control apparatus; petroleum products; mining of iron ores; and transport equipment. The corresponding values in these sectors are much lower in the case of domestically invested firms � Ratio of output to capital has wider spread across sectors in FDI-enabled firms than in domestically invested firms Conclusions FDI-enabled manufacturing firms pay higher wage per rupee of net fixed capital than domestically invested manufacturing firms. Within FDI firms, the value is relatively high in sectors such as footwear; medical appliances; electricity distribution and control apparatus; general purpose machinery; and building of construction parts. Output-capital ratio is also higher in FDI firms than in domestic firms. Within FDI-enabled firms, the outputcapital ratio is relatively high in sectors such as medical appliances; electricity distribution and control apparatus; petroleum products; mining of iron ores; and transport equipment. The corresponding values in these sectors are much lower in domestically invested firms. Data for comparison with firms of the parent companies located outside India is not available. 136
Page 2 and 3:
FDI IN INDIA AND ITS GROWTH LINKAGE
Page 4:
PROJECT TEAM Study Team Project Lea
Page 7 and 8:
linkages with the economy. The sect
Page 10:
Contents Executive Summary Chapter
Page 13 and 14:
Chapter 5: FDI: Linkages with the E
Page 16 and 17:
Executive Summary Foreign direct in
Page 18 and 19:
EXECUTIVE SUMMARY petroleum product
Page 20 and 21:
Chapter 1: Introduction 1.1 Backdro
Page 22 and 23:
section industry data. However, the
Page 24 and 25:
in India stood at $23 billion, show
Page 26 and 27:
viii) Backward and Forward Linkages
Page 28 and 29:
Chapter 2: FDI Scenario in India: T
Page 30 and 31:
Secretariat for Industrial Assistan
Page 32 and 33:
Table 2.2 shows that FDI outflows f
Page 34 and 35:
at about 2 per cent or less of the
Page 36 and 37:
Table 2.5 Sector-wise Break-up of F
Page 38 and 39:
Table 2.7 FDI in India in the Servi
Page 40 and 41:
Figure 2.4 Country-wise FDI Inflows
Page 42 and 43:
2.10 Foreign Technology Transfers A
Page 44 and 45:
Chapter 3: Mergers & Acquisitions a
Page 46 and 47:
Table 3.2 Short-term effects of FDI
Page 48 and 49:
proportion of foreign investment in
Page 50 and 51:
Chapter 4: Special Economic Zones (
Page 52 and 53:
4.4 Management of SEZs SEZs are und
Page 54 and 55:
in the eight major SEZ’s exports
Page 56 and 57:
Foreign Direct Investment in SEZs S
Page 58 and 59:
In a span of a few years, there hav
Page 60 and 61:
SPECIAL ECONOMIC ZONES (SEZS) AND F
Page 62 and 63:
existing infrastructure, (b) exploi
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Chapter 5: FDI: Linkages with the E
Page 70 and 71:
construction (4200); fuels, includi
Page 72 and 73:
FDI: LINKAGES WITH THE ECONOMY S. N
Page 74:
Table 5.5 Sector-wise FDI in India
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 92 and 93:
Chapter 7: Primary Survey: Analysis
Page 94 and 95:
the North and South zones, whereas
Page 96 and 97:
PRIMARY SURVEY: ANALYSIS AND RESULT
Page 98 and 99:
Table 7.1a Distribution of Surveyed
Page 100 and 101:
Table 7.2b Zone-wise Distribution o
Page 102 and 103:
Table 7.3b Zone-wise Distribution o
Page 104 and 105: Table 7.6a Number of Employees in S
Page 106 and 107: Table 7.7a Mode of Transport from F
Page 108 and 109: Table 7.8a Number of FDI-enabled Fi
Page 110 and 111: Chapter 8: FDI Data Reporting and C
Page 112 and 113: sector, non-profit institutions ser
Page 114 and 115: three categories, namely, (i) inves
Page 116 and 117: Table 8.1 Trends in FDI Inflows to
Page 118 and 119: FDI DATA REPORTING AND CLASSIFICATI
Page 120 and 121: Table 8.3 Trends in FDI Inflows by
Page 122 and 123: Table 8.5 DIPP Classification of FD
Page 124 and 125: SECTOR-WISE CODE 3700 DEFENCE INDUS
Page 126 and 127: FDI DATA REPORTING AND CLASSIFICATI
Page 128 and 129: S. No. DIPP DIPP Activity NIC 2-Dig
Page 134: FDI DATA REPORTING AND CLASSIFICATI
Page 137 and 138: FDI IN INDIA AND ITS GROWTH LINKAGE
Page 152 and 153: Chapter 10: Key Findings and Salien
Page 156 and 157: 7. Forex Implications: To understan
Page 158 and 159: manufacturing firms taken together.
Page 160 and 161: References Australian Bureau of Sta
Page 162 and 163: for economic growth and poverty all
Page 164: Tables for Chapter 6
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 260:
Questionnaires
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 274 and 275:
255
Page 276 and 277:
QUESTIONNAIRE 257
Page 278 and 279:
QUESTIONNAIRE 259
Page 280 and 281:
QUESTIONNAIRE 261
Page 282 and 283:
QUESTIONNAIRE 263
show all

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

Create successful ePaper yourself

Delete template?

Save as template?