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

FDI IN INDIA AND ITS GROWTH LINKAGES
revised in 2000 in order to align the FDI data-reporting system with international best practices. Table 2.3 presents the
revised inflows from the year 2000-01.
The revised practice of reporting FDI statistics addressed the issue of underestimated FDI flows into India. Following
the new exercise that included figures on reinvested earnings and other capital, the additional FDI in a given year was
found to be as high as 72 per cent for the year 2000-01 and 57 per cent in 2001-02 (Table 2.3).
The equity inflows have been differentiated under equity inflows of incorporated bodies and equity inflows of
unincorporated bodies. A comparison between the earlier period of 2000-01 and the latest available period of 2008-09
shows that the equity capital inflows of incorporated bodies continue to dominate the scene. The share increased to 86
per cent of total FDI inflows in 2008-09, as against 58 per cent in 2000-01. The reinvested earnings are the second most
important component, though their significance has declined almost continuously over the period. In 2008-09,
reinvested earnings constituted 14 per cent of the total FDI inflows compared to 33.5 per cent in 2000-01. Inflows
through other capital (which include short-term and long-term inter-corporate borrowings, trade and supplier credit,
financial leasing, financial derivatives, debt securities, and land and buildings) constituted 3.2 per cent in 2008-09 as
against 6.9 per cent during 2000-01. The equity capital inflows of incorporated bodies continue to be nearly the same,
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Table 2.4
Route-wise FDI Inflows (in US$ million)
Year FIPB & RBI’s Inflows through RBI’s Various Total
(Jan-Dec) SIA Automatic acquisition of NRI schemes*
route Route existing shares #
1991 (Aug-Dec) 78 - - 66 144
1992 188 18 - 59 264
1993 340 79 - 189 608
1994 511 116 - 365 992
1995 1264 169 - 633 2065
1996 1677 180 88 600 2545
1997 2824 242 266 290 3621
1998 2086 155 1028 91 3359
1999 1474 181 467 83 2205
2000 1474 395 479 81 2428
2001 2142 720 658 51 3571
2002 1450 813 1096 2 3361
2003 934 509 637 - 2079
2004 1055 1179 980 - 3213
2005 1136 1558 1661 - 4355
2006 1534 7121 2465 - 11120
2007 2586 8889 4447 - 15921
2008 3209 23651 6169 33029
2009 (Jan-Mar) 1992 3528 635 6155
Total 27867 48343 21012 2509 99732
(as on March 31, 2009)
Source: SIA Newsletter April, 2009. http://siadipp.nic.in/publicat/newslttr/aug2008/index.htm
Note:
1. Inflows through ADRs/GDRs/FCCBs against FDI approvals have not been included.
2. # Data prior to 1996 not provided by the RBI.
3. From 2003, RBI’s various NRI schemes inflows included under the heading RBI’s Automatic Route.