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

More documents

Recommendations

Info

Secretariat for Industrial Assistance (SIA) The Secretariat for Industrial Assistance (SIA) has been set up by the Government of India in the Department of Industrial Policy and Promotion, Ministry of Commerce & Industry to provide a single-window service for entrepreneurial assistance, investor facilitation, receiving and processing all applications which require government approval, conveying government decisions on applications filed, assisting entrepreneurs and investors in setting up projects (including liaison with other organisations and state governments) and monitoring the implementation of projects. It also notifies all government policy decisions relating to investment and technology, and collects and publishes monthly production data for select industry groups. The SIA website 2 provides chat time during fixed hours when all questions are answered. During other times, investors are encouraged to write e-mails and the Secretariat assures a reply within 24 hours. Foreign Investment Implementation Authority (FIIA) The Government of India has set up the Foreign Investment Implementation Authority (FIIA) to facilitate quick translation of Foreign Direct Investment (FDI) approvals into implementation, and to provide a pro-active one-stop after-care service to foreign investors by helping them obtain necessary approvals, sort out operational problems and meet with various government agencies to find solutions to their problems. The proforma for making a reference to the Foreign Investment Implementation Authority (FIIA) can be downloaded from the website. 3 The Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion (DIPP) functions as the Secretariat of the FIIA. 2.3 Foreign Investment Policy Foreign investment is permitted in virtually every sector, except those of strategic concern such as defence (opened up recently to a limited extent) and rail transport. Foreign companies are permitted to set up 100 per cent subsidiaries in India. No prior approval from the exchange control authorities (RBI) is required, except for certain specified activities. According to the current policy, FDI can come into India in two ways. Automatic route: FDI in sectors/activities to the extent permitted under the automatic route does not require any prior approval either by the government or the Reserve Bank of India (RBI). The investors are only required to notify the concerned regional office of the RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors. Prior Government Approval route: In the limited category of sectors requiring prior government approval, the proposals are considered in a time-bound and transparent manner by the Foreign Investment Promotion Board (FIPB) under the Department of Economic Affairs, Ministry of Finance. Approvals of composite proposals involving foreign investment/ foreign technical collaboration are also granted on the recommendations of the FIPB. 4 Legal Framework Foreign Direct Investments under Automatic Approval and Government Approval are regulated by the Foreign Exchange Management Act, 1999 (FEMA vide Reserve Bank’s Notification FEMA. 20/2000-RB dated May 3, 2000 as amended from time to time). If a foreigner or foreign company or a person resident outside India wants to invest in India either in the manufacturing sector or service sector, including the housing sector, insurance, banking, telecommunications, etc., the foreigner, foreign 2. http://siadipp.nic.in/publicat/pub_mn.htm 3. http://siadipp.nic.in/sia/fiia.htm 4. See RBI Master Circular No. 5/2005-06: Foreign Investments in India, Section 6.1.1. FDI SCENARIO IN INDIA: TRENDS AND POLICIES 11
FDI IN INDIA AND ITS GROWTH LINKAGES company or a person resident outside India has to pay due attention to the conditions, regulations and procedures which are laid down in different notifications by the Reserve Bank of India issued in terms of Section 6 of FEMA. 2.4 Trends in FDI inflows into India FDI inflows grew steadily through the first half of the 90s but stagnated between 1996-97 and 2003-04 (Table 2.1). The year-on-year fluctuations until 2003-04 make it difficult to identify a clear trend; however, inflows have been increasing continuously since 2004-05. During 2008-09, India registered FDI inflows of $33.6 billion and total cumulative inflows from August 1991 to March 2009 have been to the tune of $155 billion. 2.4.1 FDI outflows from India Indian companies are reaching overseas destinations to tap new markets and acquire technologies. While some of the investment has gone into greenfield projects, a major portion of Indian overseas investment went into acquiring companies abroad. Acquisitions bring with them major benefits such as existing customers, a foothold in the destination market and the niche technologies they require. Due to the rapid growth in Indian companies’ M&A activity, Indian companies are acquiring international firms in an effort to acquire new markets and maintain their growth momentum, buy cutting-edge technology, develop new product mixes, improve operating margins and efficiencies, and take worldwide competition head-on. It has emerged as the most acquisitive nation in emerging nations, according to global consultancy KPMG (2008) in their Emerging Markets International Acquisitions Tracker. 12 Table 2.1 FDI Inflows (August 1991 –November 2008) Year Amount of FDI inflows Annual Growth Rs. crore US$ million $ Value 1991-92 375 129 1992-93 1051 315 144.2 1993-94 2041 586 86.0 1994-95 4241 1314 124.2 1995-96 7317 2144 63.2 1996-97 10170 2821 31.6 1997-98 13317 3557 26.1 1998-99 10550 2462 -30.8 1999-00 9409 2155 -12.5 2000-01 18404 4029 87.0 2001-02 29269 6130 52.1 2002-03 24681 5035 -17.9 2003-04 19830 4322 -14.2 2004-05 27234 6051 40.0 2005-06 39730 8961 48.1 2006-07 103037 22826 154.7 2007-08 (P)+ 137935* 34362 50.5 2008-09 (P)+ 159354^ 33613 -2.2 August 1991 – March 2000 58471 15483 April 2000 – March. 2009 559474 125329 August 1991 – March 2009 617945 140812 Source: Secretariat for Industrial Assistance, various FDI Fact Sheets. Note: + RBI has included the amount of US$ 92 million for the month of April 2007. * Partially Revised ^ Preliminary P Provisional
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 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 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 81 and 82:
FDI IN INDIA AND ITS GROWTH LINKAGE
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:
Page 128 and 129:
S. No. DIPP DIPP Activity NIC 2-Dig
Page 130 and 131:
Page 132 and 133:
Page 134:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 152 and 153:
Chapter 10: Key Findings and Salien
Page 154 and 155:
Findings � About half the total o
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 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
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?