fdi in india and its growth linkages - Department Of Industrial Policy ...
fdi in india and its growth linkages - Department Of Industrial Policy ...
fdi in india and its growth linkages - Department Of Industrial Policy ...
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construction (4200); fuels, <strong>in</strong>clud<strong>in</strong>g power <strong>and</strong> oil ref<strong>in</strong>ery (0200); chemicals other than fertilisers (1900); <strong>and</strong><br />
metallurgical <strong>in</strong>dustries (0100). Eight sectors have strong backward l<strong>in</strong>kages (BW), viz., electrical equipment (0500);<br />
transportation <strong>in</strong>dustry (0700); drugs <strong>and</strong> pharmaceuticals (2200); cement <strong>and</strong> gypsum products (3500); food-process<strong>in</strong>g<br />
<strong>in</strong>dustries (2700); hotel <strong>and</strong> tourism (4000); miscellaneous mechanical & eng<strong>in</strong>eer<strong>in</strong>g (1200); <strong>and</strong> textiles (2300). The<br />
rema<strong>in</strong><strong>in</strong>g three aggregate DIPP sectors have strong forward l<strong>in</strong>kages. These <strong>in</strong>clude service sectors (3900);<br />
telecommunications (0600); <strong>and</strong> consultancy services (3800).<br />
It is important to note that the top 15 aggregate 4-digit DIPP, based on FDI <strong>in</strong>flows dur<strong>in</strong>g 2000-2007, do not <strong>in</strong>clude<br />
any non-key (NK) sectors. This implies that about 95 per cent of the FDI <strong>in</strong>flows received by India are <strong>in</strong> sectors with<br />
high economic l<strong>in</strong>kages <strong>and</strong>, hence, are expected to have benefited the <strong>growth</strong> process of the Indian economy.<br />
Table 5.1<br />
List of Key Sectors<br />
FDI: LINKAGES WITH THE ECONOMY<br />
S. No. I\O Commodity Backward Forward FW + BW<br />
Code L<strong>in</strong>kages L<strong>in</strong>kages<br />
1 107 Electricity 1.0757 4.27868 5.3544<br />
2 63 Petroleum products 1.0669 4.01811 5.0850<br />
3 110 L<strong>and</strong> transport <strong>in</strong>clud<strong>in</strong>g via pipel<strong>in</strong>e 1.0584 4.02246 5.0809<br />
4 80 Non-ferrous basic metals 1.1955 2.81608 4.0116<br />
5 77 Iron, steel <strong>and</strong> ferro alloys 1.1276 2.47790 3.6055<br />
6 73 Other chemicals 1.1676 1.97151 3.1391<br />
7 106 Construction 1.0872 2.02633 3.1135<br />
8 65 Inorganic heavy chemicals 1.1890 1.82349 3.0125<br />
9 66 Organic heavy chemicals 1.1851 1.81012 2.9953<br />
10 72 Synthetic fibres, res<strong>in</strong> 1.2036 1.65679 2.8604<br />
11 109 Railway transport services 1.0449 1.64293 2.6878<br />
12 67 Fertilisers 1.2214 1.43593 2.6573<br />
13 62 Plastic products 1.2734 1.35882 2.6322<br />
14 82 Miscellaneous metal products 1.1842 1.38594 2.5702<br />
15 57 Paper, paper products & newspr<strong>in</strong>t 1.1891 1.36512 2.5542<br />
16 92 Communications equipment 1.4015 1.14055 2.5420<br />
17 22 Animal services (agricultural) 1.3084 1.20487 2.5133<br />
18 87 Other non-electrical mach<strong>in</strong>ery 1.2141 1.29403 2.5081<br />
19 105 Miscellaneous manufactur<strong>in</strong>g 1.2329 1.21336 2.4462<br />
20 78 Iron <strong>and</strong> steel cast<strong>in</strong>g & forg<strong>in</strong>g 1.2075 1.11939 2.3269<br />
21 2 Wheat 1.2160 1.00078 2.2168<br />
51
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