INDUSTRY ORIENTED DISSERTATION PROJECT REPORT “An Analytical Study of FDI in India” Prepared for the Mumbai University in the partial fulfilment of the requirement for the award of the degree in MASTER OF FINANCIAL MANAGEMENT Submitted By

INDUSTRY ORIENTED DISSERTATION PROJECT REPORT
“An Analytical Study of FDI in India”
Prepared for the Mumbai University in the partial fulfilment of the
requirement for the award of the degree in
MASTER OF FINANCIAL MANAGEMENT
Submitted By:
Name: Kalpesh BhagneRoll No.: MFM12 Year: 2016-19
Under the guidance of
Prof. Dr. Natika PoddarSFIMAR

St. Francis Institute of Management & Research
Approved by AICTE and affiliated to Mumbai University
(An ISO 9001-2018 certified Institute)
Mt Poinsur, S.V.P. Road, Borivali (West), Mumbai-400 103 Tel.:2891 7089/2895 8403. Fax.2890 6567
E-mail: [email protected] website: www.sfimar.org

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Table of contents
Sr. No Topic Page Number
1 Introduction 4
2 Research objective, need and methodology 5
3 India announces new Foreign Direct Investment Policy, 2017 – 2018 6
4 Analysis of FDI equity inflows for FY 2017-18 8
5 Analysis of Top Investing Countries FDI equity inflows for FY 2017-18 9
6 Analysis on Sector-Wise FDI inflows for FY 2017-18 10
7 Conclusion 11

An Analytical Study of FDI in India
INTRODUCTION
Foreign Direct Investment is an investment made by an individual or a company in one country with an intention of establishing new business operations or obtaining business assets in host country. Foreign direct investment is possible only when an individual or business firm owns more than 10% of a foreign company’s capital or more of the ordinary shares or voting power of an incorporated venture or the equivalent of an unincorporated venture.
Foreign Direct Investment (FDI) plays a decisive role in the process of economic development predominantly in the developing country, where the resources like technology, skills, managerial expertise and competencies are limited to a certain extent. It plays a vital role to boost the economic growth of a country since; it offers financial assistance in the name of cash inflows which will help the domestic business operations to expand their operations at global level. One of the economic aspects of globalization is increasing the foreign direct investments by widening cross- border operations. Moreover it helps to attain a financial stability and economic growth with the help of investments in different sectors and which will aid to maintain the balance of payment of a country by increasing cash inflows with the pace of reducing trade deficit. The developed countries also needs cross-border investment, but for different reasons. The international corporations of these developed nations accelerate investments in order to strengthen their interior businesses by restructuring its processes.

Government of India visualized corporate vision and mission and articulated core objectives of corporate financial requirement and liberalized the FDI rules and regulations. To provide strength to the tectonic changes in economic reforms and to accelerate the nation’s overall economy government of India passes legislations, rules, regulations, ordinance and amendments in Foreign Direct Investment (FDI) law time to time and strategically enabled the domestic industrial and other economic sector to meet the financial requirement through diversified resources including FDI which is non debt financial capital and is widely preferred by the firms when they became multinational. With following the government policies and under the constant vigilance of regulators like RBI, SEBI and IRDA, Foreign Direct Investment (FDI) gradually occupied the core status in financing the economic activities. With liberalized FDI rules and restructured financial sector domestic industries and Indian corporate collectively explored untapped resources and found it more lucrative and transparent. Now Indian corporate is free to evolve their own system of financing working capital and can freely raise finances through foreign direct investment.

The financial management in India has changed drastically in scope and complexities due to restructured financial policies. In Indian context FDI means the investment by non resident person or entity of India, in the capital of Indian entity or company, either by buying a company or by expanding operation of an existing business in target country. It is not a charity but in fact it is core profit making investment from other nations and multinational companies’ savings. It is contrast to portfolio investment which is a passive investment in the securities of another country such as stock and bonds. Entire FDI are investment made by MNCs and other nation’s savers with a time period consideration. The modern approach to fund the corporate economic activities is much wider than the traditional approach. In present competitive global economic environment and economic overlapping to dominate raising funds have became crucial and complicated. Financing is an art and service of managing money requires freedom to acquire funds with safety and transparency. Prior to liberalisation and globalization financing economic activities through Foreign Direct Investment (FDI) was very complicated. It was very much controlled by the government and was tough for corporate to arrange and manage FDI in free economic environment.

Businesses are considered as a socio-economic activity and embrace all section of society commonly for collective satisfaction. With growing globalisation economic activities and opportunities increases with diversification and opportunistic desire of society influenced the global business tremendously. Economies started crossing the political boundary and gradually become part of global economic structure. To maintain equilibrium between internal and external financing cost and global standard between demand and supply in present technologically competitive and metamorphic environmental growth within and outside the political boundary and to cater the global status requirement and to develop competitive strength business entities need financial resources which became possible through FDI. Private sector and corporate entities analysing their ability to handle risk and return factors and financial market conditions took the decision and started generating funds through FDI according to their market value, goodwill, and managerial efficiency. Foreign Direct Investment (FDI) became ready highbred financial option for corporate which can be effectively mobilized and productively utilized.

Generally FDI arrangements require more wider and complicated set of strategic, economic behavioural consideration which usually becomes motivating factor behind foreign direct investment. Its inflow increases the investment level in the host nation which multiplies the nation’s economy and generates employment, income and savings. Its benefits are not immediate but can be achieved in future. It adjudicate complementary role by bridging the gap between domestic investment and savings. Its impact on nation’s economy largely depends upon nation’s regulated policies and the sector in which FDI has been directed and utilised. Returns on FDI depend upon longevity of investment. Many firms have long gestation period and require funds for long period and return in such firms is possible when they become operational. Foreign direct investment in stock market response immediately but this inflow is for short period of time and do not contribute in nations growth and development accept it appear in nations balance sheet. FDI which stay in nation’s economy for some time only contribute in economic growth.

REVIEW OF LITERATURE
Sandeep kaur (2017) she concluded that foreign investments boost the growth of India and India will be able to attract more FDI in future due to various new favourable norms coming in the future.

S. Bulomine Regi and S. Anthony Rahul Golden (2014), they concluded that besides many reasons like employment, capital formation, Research and development etc. FDI is the vital reason for the integration of the world economy.

Singh Kr. Arun and Agarwal P.K., (2012) “Foreign direct investment: The big bang in Indian retail”. In this article they have studied the relation of foreign investment and Indian retail business. The study is based on different literatures, case studies and analysis of organized retail market. The author discusses the policy development for FDI in the two retail categories: single brand and multi brand. The author concludes that FDI in multi brand retail should be considered, better technology and employment. The paper also concludes that openness of FDI in India would help India to integrate into worldwide market.

Dr. Mamata Jain and Mrs. Meenal Lodhana Sukhlecha, (2012), “FDI in multi brand retail: Is it the need of the hour?” The paper studies the need of the retail community to invite FDI in retailing. The study is under taken through analysis of positive and negative impacts of reforms. The study shows various advantages of FDI, which suggests for foreign participation in retailing, but the author also suggests that the ceiling should not exceed 51% even for single brands to ensure check and control on business operations.

RESEARCH OBJECTIVE, NEED AND METHODOLOGY
Objective of study
To study the FDI policy framework In India.
To determine the countries which are having highest fdi contribution in equity and to determine the sectors which are attracting highest fdi contribution in equity after make in India initiative.
To study the major government incentives for FDI In India.

Need for Study
The study is aimed to understand the flow of FDI in the Indian economy.

Finding out the reason for difference in FDI inflows.

How FDI is affecting various sectors of economy.

Research Methodology
In the present study, secondary data is used & the data has been collected from websites, journals, newsletter and annual reports of Reserve Bank of India and Department Of Industrial Policy and Promotion. The present study is exploratory cum descriptive in nature. The method of data analysis is used includes the comparison of collected data which is presented in the form of tables. Contribution in financial inclusion is compared as a relative concept. The study is limited to a sample of 3 years to compare from 2014-2018 (up to July).

India announces new Foreign Direct Investment Policy, 2017 – 2018
FDI in India
As we know India is a second largest populated country in the world after China, as well as India, is a mixed economy ( Labor and capital intensive), due to its uniqueness its attract a large number of a foreign investor to make a huge amount of profit in India.

FDI in India can be done by two ways:-
Automatic Route – Permission by Government or Reserve Bank of India is not required.

Government Route- Permission of Government is necessary.

Whereas, There are three main institutions that handle the FDI related issues in India.

Foreign Investment Promotion Board ( FIPB ).

Foreign Investment Implementation Authority ( FIIA ).
Secretariat for Industrial Assistance ( SIA ).

The government has recently made changes to the FDI policy by opening up more sectors. Here is a consolidated list of the FDI policy as of August 2017. 
Many changes have been made to the Foreign Direct Investment (FDI) policy in the last few years. Further, FDI is also allowed through two different routes namely, Automatic and the Government route. The erstwhile Foreign Investment Promotion Board (FIPB) has been phased out recently. In the automatic route, foreign entities do not need the prior approval of the government to invest. However, they have to inform the RBI about the amount of investment within a stipulated time period. In the government route, any investment can be made only after the prior approval of the government. Various other conditions as defined in the consolidated FDI policy are applicable to various sectors. In specific sectors, the FDI is prohibited.

These are the sectors in which FDI is allowed in India
Sector wise FDI LimitsSector FDI Limit Entry Route & Remarks
Agriculture & Animal Husbandry• Floriculture, Horticulture, Apiculture and Cultivation of Vegetables &      Mushrooms under controlled conditions• Development and Production of seeds and planting material• Animal Husbandry(including breeding of dogs), Pisciculture, Aquaculture• Services related to agro and allied sectors 100% Automatic
Plantation Sector• Tea sector including tea plantations• Coffee plantations• Rubber plantations• Cardamom plantations• Palm oil tree plantations• Olive oil tree plantations 100% Automatic
MiningMining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores 100% Automatic
Mining (Coal & Lignite) 100% Automatic
MiningMining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities 100% Government
Petroleum & Natural GasExploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products etc 100% Automatic
Petroleum & Natural GasPetroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs. 49% Automatic
Defence Manufacturing 100% Automatic up to 49%Above 49% under Government routein cases resulting in access to modern technology in the country
Broadcasting• Teleports(setting up of up-linking HUBs/Teleports)• Direct to Home (DTH)• Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability• Mobile TV• Head end-in-the Sky Broadcasting Service(HITS) 100% Automatic
BroadcastingCable Networks (Other MSOs not undertaking up gradation of networks towards digitalization and addressability and Local Cable Operators (LCOs)) 100% Automatic
Broadcasting Content Services• Terrestrial Broadcasting FM(FM Radio)• Up-linking of ‘News ; Current Affairs’ TV Channels 49% Government
Up-linking of Non-‘News ; Current Affairs’ TV Channels/ Down-linking of TV Channels 100% Automatic
Print Media• Publishing of newspaper and periodicals dealing with news and current affairs• Publication of Indian editions of foreign magazines dealing with news and current affairs 26% Government
Publishing/printing of scientific and technical magazines/specialty journals/ periodicals, subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by Ministry of Information and Broadcasting. 100% Government
Publication of facsimile edition of foreign newspapers 100% Government
Civil Aviation – AirportsGreen Field Projects & Existing Projects 100% Automatic
Civil Aviation – Air Transport Services• Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline• Regional Air Transport Service
(Foreign Airlines are barred from Investing in Air India) 100% Automatic up to 49%Above 49% under Government route100% Automatic for NRIs
Civil Aviation• Non-Scheduled Air Transport Service• Helicopter services/seaplane services requiring DGCA approval• Ground Handling Services subject to sectoral regulations and security clearance• Maintenance and Repair organizations; flying training institutes; and technical training institutions 100% Automatic
Construction Development: Townships, Housing, Built-up Infrastructure 100% Automatic
Industrial Parks (new & existing) 100% Automatic
Satellites- establishment and operation, subject to the sectoral guidelines of Department of Space/ISRO 100% Government
Private Security Agencies 74% Automatic up to 49%Above 49% & up to 74% under Government route
Telecom Services 100% Automatic up to 49%Above 49% under Government route
Cash & Carry Wholesale Trading 100% Automatic
E-commerce activities (e-commerce entities would engage only in Business to Business (B2B) e-commerce and not in Business to Consumer (B2C) e-commerce.) 100% Automatic
Single Brand retail tradingLocal sourcing norms will be relaxed up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology. 100% Automatic up to 49%Above 49% under Government route
Multi Brand Retail Trading 51% Government
Duty Free Shops 100% Automatic
Railway InfrastructureConstruction, operation and maintenance of the following• Suburban corridor projects through PPP• High speed train projects• Dedicated freight lines• Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities• Railway Electrification• Signaling systems• Freight terminals• Passenger terminals• Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line• Mass Rapid Transport Systems. 100% Automatic
Asset Reconstruction Companies 100% Automatic
Banking- Private Sector 74% Automatic up to 49%Above 49% & up to 74% under Government route
Banking- Public Sector 20% Government
Credit Information Companies (CIC) 100% Automatic
Infrastructure Company in the Securities Market 49% Automatic
Insurance• Insurance Company• Insurance Brokers• Third Party Administrators• Surveyors and Loss Assessors• Other Insurance Intermediaries 49% Automatic
Pension Sector 49% Automatic
Power Exchanges 49% Automatic
White Label ATM Operations 100% Automatic
Financial services activities regulated by RBI, SEBI, IRDA or any other regulator 100% Automatic
Pharmaceuticals(Green Field) 100% Automatic
Pharmaceuticals(Brown Field) 100% Automatic up to 74%Above 74% underGovernment route
Food products manufactured or produced in IndiaTrading, including through e-commerce, in respect of food products manufactured or produced in India. 100% Government
Restricted Sector of FDI in India
Gambling and Betting activities.(e.g-casinos).
A business of chit fund, Nidhi company.

Prohibition on the making of cigars, cigarettes or any Tobacco substitute.

Agriculture activities( except Floriculture, Horticulture, Fisheries, Livestock (animal husbandry), Development of seeds, cultivation of vegetables & mushrooms, and allied activities.

Activities reserved for the Public sector -Atomic energy, Railways, National security services.

Real estate business(except development of the town, housing, built of infrastructure and construction department projects) or construction of farmhouses.

Trading in transferable development projects.

HISTORICAL ANALYSIS OF FDI IN INDIA
Table 1: Statement of FDI equity inflows (month-wise) during the financial year 2017-18
Financial Year 2017-18( April-March ) Amount of FDI Equity inflows
(In Rs. Crore) (In US$ mn)
1. April, 2017 20,826 3,229
2. May, 2017 26,159 4,060
3. June , 2017 20,101 3,119
4. July, 2017 31,112 4,827
5. August, 2017 51,198 8,004
6. September, 2017 13,632 2,115
7. October, 2017 17,454 2,682
8. November, 2017 20,019 3,086
9. December, 2017 30,956 4,819
10. January, 2018 15,386 2,418
11. February, 2018 20,478 3,181
12. March, 2018 21,569 3,317
2017-18 (from April, 2017 to March, 2018) # 2,88,889 44,857
2016-17 (from April, 2016 to March, 2017) # 2,91,696 43,478
%age growth over last year (-)1% (+)3%
Source: Department of Industrial Policy & Promotion, Ministry of Commerce and Industry
Note: (i) Country & Sector specific analysis is available from the year 2000 onwards, as Remittance-wise details are provided by RBI from April, 2000 onwards only. # Figures are provisional, subject to reconciliation with RBI, Mumbai.

Fig 1: Statement of FDI equity inflows (month-wise) during the financial year 2017-18:
The above table (1) and figure(1) shows that Foreign Direct Investment in India during 2017-18 is reasonably high in the month of October with an investment of Rs.51,198 Crores and it was achieved due to the reforms in FDI framework carried out by Central Government. While comparing the FDI inflows in our country with financial year 2016-17 to 2017-18 it was relatively lower with -1% in terms of Indian rupees but If we compared the same with Us dollor it was high with 3%.

Table 2: Share of Top Investing Countries FDI equity inflows (Financial year2017-18)
Amount Rupees in Crores (US$ in Million)
Ranks Country 2017-18Rs. 2017-18US $ Cumulative Inflows % of total Inflows (in terms of US $)
2000-18Rs. 2000-18US $ 1 Mauritius 1,02,492 15,941 6,88,442 1,27,578 34%
2 Singapore 78,542 12,180 3,93,584 66,771 18%
3 Japan 10,371 1,610 1,52,630 27,286 7%
4 U. K. 5,473 847 1,31,018 25,438 7%
5 Netherlands 18,048 2,800 1,35,215 23,482 6%
6 U.S.A 13,505 2,095 1,24,037 22,417 6%
7 Germany 7,391 1,146 59,435 10,845 3%
8 Cyprus 2,680 417 49,411 9,573 3%
9 France 3,297 511 33,934 6,237 2%
10 UAE 6,767 1,050 32,953 5,754 2%
Total FDI Inflows from all Countries * 2,88,889 44,857 20,75,911 3,76,848  
Source: Department of Industrial Policy & Promotion, Ministry of Commerce and Industry
*Includes inflows under NRI Schemes of RBI.

Note:
Cumulative country-wise FDI equity inflows are at – Annex-‘A’.
%age worked out in US$ terms & FDI inflows received through FIPB/SIA+ RBI’s Automatic Route + acquisition of existing shares only.

Fig 2: Share Of Top Investing Countries FDI equity inflows during the financial year 2017-18
The above table (2) and Figure (2) shows that Mauritius is the largest investor in India during 2017-18. FDI inflows from Mauritius constitute about 34% of the total FDI in India and enjoying the top position on India’s FDI map from 1995. Then Singapore is the second largest investing country in India. FDI inflow from Mauritius is more than double then that from the US. The other major countries are Japan with a relative share of 8% followed by UK, Netherlands, USA, Germany, Cyprus, France, and UAE.

Table 3: Statement on Sector-Wise FDI inflows during the financial year 2017-18:
Amount in Rs. Crores (US$ in Million)
Ranks Sector 2017-18Rs. 2017-18US $ Cumulative Inflows % of total Inflows (in terms of US $)
2000-18Rs. 2000-18US $ 1 SERVICES SECTOR ** 43,249 6,709 3,59,817 66,185 18%
2 COMPUTER SOFTWARE & HARDWARE 39,670 6,153 1,76,459 30,823 8%
3 TELECOMMUNICATIONS 39,748 6,212 1,69,912 30,158 8%
4 CONSTRUCTION DEVELOPMENT: TOWNSHIPS, HOUSING, BUILT-UP INFRASTRUCTURE 3,472 540 1,18,111 24,833 7%
5 AUTOMOBILE INDUSTRY 13,461 2,090 1,05,679 18,763 5%
6 TRADING 28,078 4,348 1,12,635 18,559 5%
7 DRUGS & PHARMACEUTICALS 6,502 1,010 82,322 15,717 4%
8 CHEMICALS (OTHER THAN FERTILIZERS) 8,425 1,308 77,377 14,601 4%
9 POWER 10,473 1,621 70,559 13,210 4%
10 CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES 17,571 2,730 77,946 12,547 3%
Total FDI Inflows from all Countries * 2,88,889 44,857 20,75,911 3,76,848  
Source: Department of Industrial Policy & Promotion, Ministry of Commerce and Industry
Note:
** Services sector includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis
Cumulative Sector- wise FDI equity inflows are at – Annex-‘B’.

FDI Sectoral data has been revalidated / reconciled in line with the RBI, which reflects minor changes in the FDI figures (increase/decrease) as compared to the earlier published sectoral data.

Note: ** Services sector includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis
Fig 3: Sectors attracting highest FDI equity inflows during the financial year 2017-18
The above table (3) and figure (3) shows that Service Sector has attracted largest FDI during 2017-18. FDI inflows into service sectors constitute about 18% of the total FDI in India and enjoying the top position on India’s FDI map. Computer Software and hardware occupied the second position with the share of about 8% and followed by other major sectors Telecommunications, Construction Development (Townships, Housing, Built-Up Infrastructure), Automobile Industry, Trading, Drugs ; Pharmaceuticals, , Chemicals (Other Than Fertilizers), Power, Construction (Infrastructure) Activities.

Conclusion
FDI in India has a significant role in the economic growth and development of India. FDI in India to various sectors can attain sustained economic growth and development through creation of jobs, expansion of existing manufacturing industries. This leads to an increase in income and more buying power to the people, which in turn leads to an economic boost. As per the study, the inflow of FDI in service sectors and construction and development sector during the year 2016- 2017 attained substantial economic growth and development through creation of jobs in India. Computer, Software ; Hardware and Drugs ; Pharmaceuticals sector were the other sectors to which attention was shown by Foreign Direct Investors (FDI). So, the future of India lies in FDI ; the government must proceed in that direction if it wants to make the Indian economy a developed economy.

References
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Annex-A
STATEMENT ON COUNTRY-WISE FDI EQUITY INFLOWS FROM APRIL 2000 TO MARCH 2018
S.NoName of the Country Amount of Foreign Direct Investment Inflows %age with Inflows+
(In Rs crore) (In US$ million) 1 Mauritius 688,442.39 127,578.35 33.85
2 Singapore 393,584.29 66,770.70 17.72
3 Japan 152,630.16 27,285.78 7.24
4 United Kingdom 131,018.05 25,438.20 6.75
5 Netherlands 135,214.92 23,482.06 6.23
6 U.S.A 124,036.94 22,417.45 5.95
7 Germany 59,435.30 10,844.56 2.88
8 Cyprus 49,410.59 9,572.90 2.54
9 France 33,934.24 6,236.74 1.65
10 UAE 32,953.39 5,754.41 1.53
11 Switzerland 23,534.22 4,313.86 1.14
12 HongKong18,133.10 3,114.14 0.83
13 Cayman Islands 16,303.33 2,825.67 0.75
14 Spain 14,886.09 2,715.24 0.72
15 South Korea 15,390.23 2,708.43 0.72
16 Italy 14,537.78 2,609.75 0.69
17 Luxembourg 15,231.27 2,506.83 0.67
18 China 12,358.08 1,985.93 0.53
19 Sweden 7,485.67 1,430.53 0.38
20 British Virginia 7,543.38 1,391.19 0.37
21 Belgium 7,402.34 1,295.05 0.34
22 Russia 6,972.08 1,235.78 0.33
23 Canada 7,076.59 1,216.78 0.32
24 Australia 4,835.64 902.88 0.24
25 Malaysia 4,708.19 866.76 0.23
26 Poland 3,635.80 669.75 0.18
27 Indonesia 2,941.51 629.10 0.17
28 The Bermudas 2,252.20 502.07 0.13
29 Ireland 2,774.95 489.24 0.13
30 Denmark 2,512.84 482.34 0.13
31 Oman 2,383.36 469.20 0.12
32 South Africa 2,508.93 435.13 0.12
33 Finland 2,241.07 421.44 0.11
34 Thailand 2,247.56 380.87 0.10
35 Austria 2,079.00 371.87 0.10
36 Bermuda 2,362.00 354.36 0.09
37 Taiwan 1,750.36 290.75 0.08
38 Philippines 1,476.55 235.93 0.06
39 Norway 1,182.04 217.54 0.06
40 Seychelles 1,227.93 202.13 0.05
41 Saudi Arabia 1,232.54 201.21 0.05
42 Bahrain 1,020.97 164.60 0.04
43 Virgin Islands(US) 938.49 151.53 0.04
44 Chile 712.55 150.54 0.04
45 Israel 815.35 143.31 0.04
46 Turkey 778.59 140.19 0.04
47 Morocco 655.96 138.00 0.04
48 Mexico 715.81 121.93 0.03
49 British Isles 465.62 100.91 0.03
50 Sri Lanka 492.30 84.15 0.02
51 Portugal 500.02 82.67 0.02
52 West Indies 353.89 79.17 0.02
53 Kuwait 376.26 63.44 0.02
54 NewZealand341.54 63.41 0.02
55 St. Vincent 293.44 55.82 0.01
56 Channel Islands 275.07 47.43 0.01
57 Panama 213.24 45.02 0.01
58 Korea(North) 212.30 40.81 0.01
59 Bahamas 203.02 40.62 0.01
60 Saint Kitts & Nevis 147.88 33.53 0.01
61 Jordan 167.91 30.54 0.01
62 Isle of Man 175.80 30.07 0.01
63 Liechtenstein 158.01 26.47 0.01
64 Kazakhstan 135.77 26.35 0.01
65 Czech Republic 123.90 24.99 0.01
66 Brazil 124.80 24.83 0.01
67 SAMOA ISLANDS 153.41 23.99 0.01
68 Qatar 154.94 23.89 0.01
69 Kenya 109.17 22.74 0.01
70 Iceland 102.42 22.50 0.01
71 Gibraltar 92.51 20.88 0.01
72 Hungary 101.00 18.77 0.00
73 Malta 75.11 15.58 0.00
74 Liberia 65.51 14.70 0.00
75 Slovakia 79.32 13.97 0.00
76 BELORUSSIA 89.82 13.78 0.00
77 Nigeria 68.99 13.61 0.00
78 Belarus 56.61 13.17 0.00
79 Scotland 73.50 12.87 0.00
80 Guersney74.54 12.05 0.00
81 Cambodia 66.42 10.34 0.00
82 Argentina 46.70 10.23 0.00
83 Maldives 48.35 9.16 0.00
84 Myanmar 35.78 8.97 0.00
85 Greece 51.65 8.92 0.00
86 Slovenia 42.17 8.73 0.00
87 Egypt 48.25 7.89 0.00
88 Romania 42.56 7.73 0.00
89 Ghana 40.55 7.69 0.00
90 Belize 36.13 7.16 0.00
91 Uganda 45.47 7.13 0.00
92 Ukraine 43.12 7.07 0.00
93 East Africa 36.22 5.61 0.00
94 Uruguay 26.99 5.33 0.00
95 Colombia 30.97 5.12 0.00
96 Rep. of Fiji Islands 22.30 5.07 0.00
97 Tunisia 23.98 4.96 0.00
98 Vietnam 32.71 4.92 0.00
99 Tanzania 19.97 3.45 0.00
100 Vanuatu 18.94 3.20 0.00
101 West Africa 15.89 3.03 0.00
102 Lebanon 16.92 2.78 0.00
103 Trinidad & Tobago 14.70 2.64 0.00
104 Bulgaria 15.85 2.59 0.00
105 Monaco 14.00 2.51 0.00
106 Nepal 12.48 2.45 0.00
107 Estonia 15.05 2.43 0.00
108 Botswana 14.74 2.29 0.00
109 Yemen 8.20 1.95 0.00
110 Afghanistan 12.41 1.87 0.00
111 SAN MARINO 9.41 1.52 0.00
112 TAJIKISTAN 8.98 1.37 0.00
113 Cuba 4.73 1.04 0.00
114 Iran 6.18 1.00 0.00
115 Guyana 4.60 1.00 0.00
116 Togolese Republic 5.07 0.92 0.00
117 SAINT LOUSIA 5.59 0.86 0.00
118 MOZAMBIQUE 5.09 0.78 0.00
119 MARSHALL ISLANDS 4.51 0.67 0.00
120 Congo (DR) 2.41 0.54 0.00
121 Croatia 2.29 0.52 0.00
122 Jamaica 2.80 0.51 0.00
123 Latvia 2.67 0.43 0.00
124 Aruba 1.96 0.43 0.00
125 Brunei Darussalam 2.62 0.40 0.00
126 Lithuania 2.31 0.36 0.00
127 Anguilla 1.47 0.29 0.00
128 Iraq 1.18 0.24 0.00
129 Yugoslavia 1.13 0.24 0.00
130 Zambia 1.14 0.22 0.00
131 SURINAME 1.28 0.21 0.00
132 Peru 1.11 0.19 0.00
133 Georgia 1.12 0.18 0.00
134 St. Lucia 0.62 0.10 0.00
135 Libya 0.28 0.07 0.00
136 Mongolia 0.27 0.06 0.00
137 Bangladesh 0.31 0.05 0.00
138 Sudan 0.24 0.05 0.00
139 Costa Rica 0.29 0.05 0.00
140 Ivory Coast 0.30 0.05 0.00
141 Fiji Island 0.29 0.04 0.00
142 Serbia 0.10 0.02 0.00
143 Cape Verde 0.10 0.01 0.00
144 Muscat 0.06 0.01 0.00
145 Venezuela 0.03 0.01 0.00
146 Algeria 0.03 0.00 0.00
147 Cameroon 0.01 0.00 0.00
148 TURKMENISTAN 0.02 0.00 0.00
149 Bolivia 0.01 0.00 0.00
150 Barbados 0.01 0.00 0.00
151 Kyrgyzstan 0.01 0.00 0.00
152 Syria 0.01 0.00 0.00
153 Djibouti 0.00 0.00 0.00
154 Paraguay 0.00 0.00 0.00
155 SENEGAL 0.00 0.00 0.00
156 Swaziland 0.00 0.00 0.00
157 FII’s 0.25 0.06 0.00
158 NRI *** 20,383.66 4,684.25 1.24
159 Country Details Awaited 30,982.65 6,980.16 1.85
Sub Total 2,075,910.93 376,847.81 160 RBI’s- NRI Schemes (2000-2002) 533.06 121.33 GRAND TOTAL 2,076,443.99 376,969.14 ‘*’Complete/separate data on NRI investment is not maintained by RBI. However, the above FDI inflows data on NRI investment, includes investment by NRI’s, who have disclosed their status as NRI’s, at the time of making their investment.

‘+’ Percentage of inflows worked out in terms of US$ & the above amount of inflows received through FIPB/SIA route, RBI’s automatic route & acquisition of existing shares only.

Annex-B
STATEMENT ON SECTOR-WISE FDI EQUITY INFLOWS FROM APRIL 2000 TO MARCH 2018

S.NoSector Amount of FDI Inflows %age of Total Inflows
(In Rs crore) (In US$ million) 1 SERVICES SECTOR 359,816.79 66,185.07 17.56
2 COMPUTER SOFTWARE & HARDWARE 176,458.83 30,822.68 8.18
3 TELECOMMUNICATIONS 169,912.07 30,157.88 8.00
4 CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects 118,110.67 24,832.65 6.59
5 AUTOMOBILE INDUSTRY 105,679.21 18,763.43 4.98
6 TRADING 112,635.36 18,558.99 4.92
7 DRUGS & PHARMACEUTICALS 82,322.34 15,716.85 4.17
8 CHEMICALS (OTHER THAN FERTILIZERS) 77,377.30 14,600.99 3.87
9 POWER 70,559.48 13,210.13 3.51
10 CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES 77,945.83 12,547.16 3.33
11 HOTEL & TOURISM 63,128.26 11,275.43 2.99
12 METALLURGICAL INDUSTRIES 55,480.41 10,702.29 2.84
13 FOOD PROCESSING INDUSTRIES 50,966.34 8,447.81 2.24
14 INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA) 40,606.64 7,132.37 1.89
15 ELECTRICAL EQUIPMENTS 39,909.02 7,056.14 1.87
16 PETROLEUM & NATURAL GAS 34,012.66 6,880.35 1.83
17 NON-CONVENTIONAL ENERGY 37,283.56 6,385.97 1.69
18 CEMENT AND GYPSUM PRODUCTS 29,164.38 5,258.66 1.40
19 HOSPITAL & DIAGNOSTIC CENTRES 29,362.50 5,047.58 1.34
20 INDUSTRIAL MACHINERY 27,225.69 4,856.69 1.29
21 CONSULTANCY SERVICES 24,288.17 4,377.39 1.16
22 SEA TRANSPORT 22,136.17 3,764.05 1.00
23 MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES 17,512.86 3,419.76 0.91
24 TEXTILES (INCLUDING DYED,PRINTED) 16,683.59 2,925.87 0.78
25 RUBBER GOODS 16,047.48 2,739.22 0.73
26 FERMENTATION INDUSTRIES 13,885.99 2,526.30 0.67
27 MINING 12,636.98 2,308.26 0.61
28 AGRICULTURE SERVICES 10,501.79 2,030.93 0.54
29 ELECTRONICS 10,004.45 1,916.87 0.51
30 PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS) 10,834.32 1,897.22 0.50
31 EDUCATION 9,785.98 1,701.95 0.45
32 MEDICAL AND SURGICAL APPLIANCES 9,744.53 1,664.07 0.44
33 AIR TRANSPORT (INCLUDING AIR FREIGHT) 9,795.27 1,642.97 0.44
34 PORTS 6,730.91 1,637.30 0.43
35 PAPER AND PULP (INCLUDING PAPER PRODUCTS) 7,276.70 1,362.60 0.36
36 SOAPS, COSMETICS & TOILET PREPARATIONS 7,590.07 1,340.95 0.36
37 RETAIL TRADING 7,743.82 1,212.34 0.32
38 DIAMOND,GOLD ORNAMENTS 6,513.82 1,128.99 0.30
39 MACHINE TOOLS 4,798.18 907.02 0.24
40 RAILWAY RELATED COMPONENTS 5,150.23 897.09 0.24
41 PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY) 5,045.62 863.05 0.23
42 CERAMICS 4,041.51 810.24 0.22
43 VEGETABLE OILS AND VANASPATI 4,430.25 782.63 0.21
44 GLASS 3,426.42 622.38 0.17
45 FERTILIZERS 3,239.09 592.37 0.16
46 AGRICULTURAL MACHINERY 2,472.42 466.38 0.12
47 EARTH-MOVING MACHINERY 2,338.25 418.57 0.11
48 COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS 1,946.20 374.44 0.10
49 BOILERS AND STEAM GENERATING PLANTS 1,623.60 263.28 0.07
50 SCIENTIFIC INSTRUMENTS 1,553.65 260.46 0.07
51 SUGAR 1,269.13 212.34 0.06
52 LEATHER,LEATHER GOODS AND PICKERS 1,040.26 189.21 0.05
53 TIMBER PRODUCTS 971.28 167.60 0.04
54 GLUE AND GELATIN 842.67 132.15 0.04
55 TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER) 645.76 131.24 0.03
56 DYE-STUFFS 510.44 88.40 0.02
57 INDUSTRIAL INSTRUMENTS 383.87 78.41 0.02
58 PHOTOGRAPHIC RAW FILM AND PAPER 273.76 67.29 0.02
59 COAL PRODUCTION 119.19 27.73 0.01
60 MATHEMATICAL,SURVEYING AND DRAWING INSTRUMENTS 39.80 7.98 0.00
61 DEFENCE INDUSTRIES 25.57 5.13 0.00
62 COIR 22.05 4.07 0.00
63 MISCELLANEOUS INDUSTRIES 52,031.51 10,442.19 2.77
Sub Total 2,075,910.93 376,847.81 64 RBI’s- NRI Schemes (2000-2002) 533.06 121.33 GRAND TOTAL 2,076,443.99 376,969.14 *Services sector includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing Analysis
FDI inflows data re-classified, as per segregation of data from April 2000 onwards.
Percentage of inflows worked out in terms of US$ & the above amount of inflows received through FIPB/SIA route RBI’s automatic route & acquisition of existing shares only.

FDI Sectoral data has been revalidated / reconciled in line with the RBI, which reflects minor changes in the FDI figures (increase/decrease) as compared to the earlier published sectoral data