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

PRIMARY SURVEY: ANALYSIS AND RESULTS
Table 7.6b shows the zone-wise number of employees per firm for the surveyed 254 FDI-enabled firms. The number
of employees per firm is 672. However, the number of employees per firm in manufacturing is 791 compared to 579
in services. The number of employees per firm is higher in large cities in both manufacturing and services vis-à-vis
small cities.
Table 7.7a shows the mode of transport from the FDI firm to the closest urban/metro centre. Of a sample of 121
manufacturing firms for which data was available from the questionnaires, nearly 97 firms (71 in large cities and 26 in
small cities) mentioned road transport as the major means of transport to the nearest urban centre and 23 firms (22 in
large cities, 1 in small city) said rail was the most important mode of transport, followed by only one firm which said
that the mode of transport most commonly used and available is air transport. The findings are similar for service firms;
nearly 106 service firms (92 in large cities and 14 in small cities) out of the sample of 136 said that road is the most
important mode of transport, followed by 29 firms (only large cities) for whom rail was the most important mode of
transport, and only one service firm mentioned the air route as a means of transport.
Table 7.7b describes the quality of transport from the firm to the nearest urban centre/metro. Of the 111 firms for which
data is available, 59 firms mentioned that the quality of transport is good from the firm to the nearest urban centre, 36
firms opined that the quality of transport is average and 16 firms rated the quality of transport as excellent. Of a sample
of 123 service firms, 37 service firms mentioned the quality of transport from the firm to the nearest urban centre to be
excellent, 69 firms termed the quality to be good and only 17 said the quality of transport was average. Across the
sample, a large number of service and manufacturing firms mentioned the quality of transport to the nearest urban centre
from the firm to be good.
Table 7.7c shows the infrastructure facilities available within a radius of 10 kilometres from the firm. It appears that the
presence of FDI-enabled firms is concurrent with the existence of schools, colleges and hospitals within a radius of 10
km. This scenario is similar across zones, except for the East zone where data for small cities is not available.
Table 7.8a describes the number of firms that have led to improved infrastructure facilities in the region. Of a sample of
124 manufacturing firms across zones and large and small cities, 98 firms opined that setting up the FDI-enabled firms
had led to improvement in infrastructure. 91 firms observed that the presence of FDI-enabled units has led to improved
road infrastructure, followed by 72 firms which said that setting up FDI-enabled firms has resulted in improved electricity
and 61 firms said that FDI-enabled firms have also led to the setting up of a hospital in the area and that facilities like
education, drinking water, recreation and other services also improved in the region. The same holds true if an FDI-enabled
service firm is set up. Nearly 52 service firms said that the setting up of an FDI-enabled service firm has led to
improvements in road infrastructure, 39 facilities stated that there is an improvement in electricity supply and 37 firms said
that there is access to hospitals. Though zone-wise the story is the same, it differs between large and small cities; 14.7 per
cent of the manufacturing firms in large cities said that the setting up of the FDI-enabled firms has not led to
improvements in infrastructure facilities, but 85.3 per cent said that there is an improvement in infrastructure facility due
to the setting up of an FDI-enabled firm. Similarly, 42.9 per cent of the FDI-enabled firms in manufacturing in small cities
said that the FDI firm has not led to improvement in infrastructure facilities, whereas 57.1 per cent said that there is an
improvement in infrastructure facilities due to the setting up of an FDI-enabled firm; and 46.7 per cent of the service firms
in small towns said that the setting up of the service firm has not improved infrastructure in the area, while only 53.3 per
cent of the service firms in small towns said that the FDI-enabled service firm has led to improvements in infrastructure.
In the case of large cities, 61.5 per cent said that the setting up of FDI service firms has not led to improved infrastructure
facilities, but 38.5 per cent said that the setting of FDI service firms led to improved infrastructure facilities (Table 7.8 b).
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