Prime Minister Narendra Modi’s call to foreign investors to invest in India comes at a time when foreign direct investments have somewhat dwindled, as compared to the highs that FDI inflows touched in 2011-12.
Here are a few facts:
1. The total Foreign Direct Investment (FDI) Inflows during the last three years and the current financial year (up to April 2014) is:
Financial Year/Total FDI inflow* (in US $ million)
2011-12 (P): 46,556
2012-13 (P): 34,298
2013-14 (P): 36,396
2014-15# (P): 2,597
(# up to April, 2014,*including NRIs)
2. FDI is prohibited in lottery business including government/private lottery, online lotteries, etc.; gambling and betting including casinos etc.; chit funds; trading in transferable development rights(TDRs); real estate business or construction of farm houses; atomic energy and railway transport (other than MRTS).
3. The 9th Global Capital Confidence Barometer, October 2013 — a survey by Ernst & Young (EY) has reported that India is the top investment destination among emerging and developed markets.
4. The Government has also set up ‘Invest India’, a joint venture company between the Department of Industrial Policy & Promotion and FICCI, as a not-for-profit, single window facilitator, for prospective overseas investors and to act as a structured mechanism to attract investment focused on MSME Sector.