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Dr. R. N. Pandey

              Director
Department of Industrial Policy and
            Promotion
Ministry of Commerce and Industry

                                      1
INDIAN Reforms-The Philosophy

                      Plug into the
                     Global Economy




                           FDI recognised as a
                             Growth Driver



           Large scale economic reforms


                                                 2
Attracting long-term          Creating skilled employment
       foreign capital to           Opportunities and Import
     supplement domestic            of world Class managerial
      investment efforts,                    practices
 particularly in infrastructure
and export competitive sectors




                             FDI

  Developing attractive              Promoting technology
    Configurations of                and other linkages to
  locational advantages            enhance domestic industry
      at global level                   competitiveness
                                                                 3
Global FDI trends 2000
s Record FDI flows of US$ 1.3 trillion in 2000
  Developed world still favourite (over 75% of
  global share; mainly cross-border M&A)
d US$ 240 billion to developing countries
t Developing Asia gets US$ 143 billion, of
  which China and Hong Kong-China alone
  account for US$ 105 billion
1 Latin America gets US$ 86 billion
t WHAT WE ARE REALLY LOOKING
  AT IS A SIGNIFICANT SHARE OF
  WHAT COMES TO ASIA                                  4
                               Source: UNCTAD WIR01
% Share of Selected Countries in Total FDI Inflow in
                       Developing Countries
                   1995           1998           1999           2000
Brazil                      4.9           15.1           14.1          13.9
China                      31.6           23.2           18.2          17.0

India                      1.0            1.4            1.0           1.0
Malaysia                    5.1            1.4            1.6           2.3
South Korea                 1.6            2.9            4.8           4.2
Singapore                   7.8            3.3            3.2           2.7

Thailand                    1.8            2.7            1.6           1.0
Total Dev.                113.3          188.4          222.0      240.2
Countries
(US$ Bn)
                                                                              5
Ratio of FDI Inflow (%) to Gross Domestic Product
                    1995         1998         1999      2000
Brazil               0.8          3.6          5.9      5.7
China                5.1          4.6          4.1       3.8
India                0.6          0.6          0.5       0.5
Malaysia             6.8         3.8           4.4      3.9
South Korea          0.4         1.7           2.6      2.2
Singapore           10.5         7.6           8.6      7.0
Thailand             1.2         4.6           3.0      2.0

                                                               6
Sectoral Targets for Achieving 8% GDP Growth ( $7-8 Bn)
  Sector                           FDI Target (US$ Bn)
  Telecom                                            2.5
  Power                                              1.2
  Financial Services                                 0.8
  LNG & Oil Exploration                              1.0
  Food & beverage                                    0.4
  Transportation                                     0.4
  Textiles                                           0.3
  Ports                                              0.3
  Chemicals & Petrochemicals                         0.2
  Hotels & Tourism                                   0.2
  Real Estate                                        0.2
  Roads                                              0.2
  Civil Aviation                                     0.2
  Dis-investment                                     0.5
  Total                                              8.9   7
AN IDEAL INVESTMENT DESTINATION
   World’s largest democracy

   Second largest emerging market (US$ 2.4 trillion)

   Liberal Foreign Investment Regime

   Skilled and competitive labour force

   Amongst the highest rates of return on investment

   Large domestic market

   Independent judiciary
                                                        8
Key Economic Indicators: GDP Growth
                            Rate (1993-94 as base year)

                  9%
                             7.6%       7.8%
                  8%
                  7%
                                                               6.8%        6.40%
Growth Rate (%)




                  6%                               5.1%
                  5%                                                                               5.40%
                                                                                       4.0%
                  4%
                  3%
                  2%
                  1%
                  0%
                         6




                                                                                   1
                                    7




                                               8




                                                           9




                                                                       0




                                                                                              E)
                       -9




                                                                                 -0
                                  -9




                                             -9




                                                         -9




                                                                     -0




                                                                                            (A
                     95




                                           97




                                                       98




                                                                   99




                                                                               00
                                96




                                                                                             2
                   19




                                                                             20
                              19




                                         19




                                                     19




                                                                 19




                                                                                           -0
                                                                                         01
                                                                                       20
                                                                                                      9
Key Economic Indicators: External sector
Foreign Exchange Reserves (US$ billion)




                                          80                                                                                        56
                                                                                                           48.8       48.33
                                          70                                                     46.64                              49
                                                                             42.5       43.6                           63.93




                                                                                                                                         Exchange Rate (Rs/US$)
                                          60                       37.2                                                             42
                                                         35.5                                              54.15
                                          50
                                                33.5                                                                                35
                                                                                                 42.26
                                          40
                                                                                          38                                        28
                                                                              30
                                          30                        26                                                              21
                                                          22
                                          20    17                                                                                  14

                                          10                                                                                        7

                                          0                                                                                         0
                                               1995-96   1996-97   1997-98   1998-99   1999-00   2000-01   2001-02    2002-03(as
                                                                                                                     on 11-10-02)                 10
INDIA: TRACING FIRST GENERATION REFORMS

• Industrial delicensing
• Liberal FDI regime
• Freedom to invest & expand
• Simplification of investment procedures
• Tax rationalisation
• Current Account convertibility
• Public sector divestment
• WTO compatibility – Patents, etc.
                                            11
The Reforms Process Ahead
e Public sector divestment
v Cutting fiscal deficit
e Amendments to crucial economic legislations
u Financial sector reforms
  Labour reforms
  Corporate governance
a Meeting all multilateral commitments in terms of GATT,
     GATS, TRIPS, etc.
                                                           12
Some Independent Studies

• JBIC Survey 2002 ranks India as
  the 5th most promising investment
  destination
• EIU’s ‘World Investment
  Prospects 2002’ projects steep
  growth in FDI inflows to India

                                      13
INVESTMENT OPPORTUNITIES

             INFRASTRUCTURE


    10 year tax holiday for developers of SEZs/
    Industrial Parks
s   100% tax Exemption for 5 Years and 50%
    thereafter for two years for SEZ Units
w   100% Tax holiday for 10 years for
    infrastructure undertakings
    100% tax deduction for 10 consecutive
    assessment years to undertakings providing
    Telecom services
                                                  14
INVESTMENT OPPORTUNITIES

                         INFRASTRUCTURE
   INVESTMENT REQUIREMENT: US $ 347 Bn
Sector                      Present          Capacity                Investment By
                            Capacity         Addition By             2006
                                             2006                     (US $ Bn)
Power                     1.1 7Lakh MW          1,11,500 MW                 178

Telecom                    37 M Lines            52 M Lines                   55

Ports                       344 MT                  350 MT                      7
Roads
  a. National Highways    58, 112 Kms            23,000 Kms                   27

  b. State Highways       1,37,119 Kms          60,000 Kms
  c. Super N. H.                                 4,000 Kms

Urban Infrastructure                                                          80
Service
                                                                                           15
                                       Source: Rakesh Mohan Committee Report (1996-2006)
Integrated Townships
• FDI policy
    100% FDI for development of integrated townships,
     including housing, commercial premises, hotels,
     resorts, city and regional level urban infrastructure
     facilities such as roads and bridges, mass rapid
     transit systems and manufacture of building
     materials
• Incentives
    Ten years tax holiday to undertaking developing or
     operating and maintaining or developing, operating
     and maintaining infrastructure facilities such as;
     water supply project, water treatment system,
     sanitation and sewerage system or solid waste
     management system
                                                             16
Industrial Parks
• Concept
     Industrial Parks - Self contained island with developed plots/
     pre-built factories, power, telecom, water and other high-
     quality infrastructural facilities for industrial, residential, and
     commercial areas
• Incentives
  100% tax exemption under section 80IA subsection 4(iii) of the
  IT Act, available to any undertaking engaged in developing,
  developing and operating or operating and maintaining an
  Industrial Park for ten consecutive years out of the fifteen years
  for the Industrial Park developed between 1.4.97 and 31.03.2006
  and approved by Department of Industrial Policy and Promotion
  under the Industrial Park Scheme, 2002 notified vide S.O. No.
  354(E) dated 01.04.2002
                                                                      17
Approval and Investment in Industrial Parks under
  Industrial Park Scheme, 2002 (Till 18.10.2002)
      Total No. of Industrial Parks Approved – 38
 State              No. of           State          No. of
                    Industrial                      Industrial
                    Parks                           Parks
 UP                              5 Punjab                    1

 Gujarat                         4 Tamil Nadu                2

 West Bengal                     3 Maharashtra               4

 J&K                             1 Andhra Pradesh            2

 Pondicherry                     3 Karnataka               11

 Kerala                          2

                                                                 18
Recent Initiatives on FDI
•        FDI up to 100% allowed in Tea sector, including tea
plantations with prior Government approval
•        100% FDI permitted on automatic route in Advertising & Films
•       Royalty on brand name/trademark payable as percentage of net sales
•        Guidelines for licensing production of Arms & Ammunition
notified
        26% FDI permitted
        3 year lock-in period for transfer of equity from one investor to another
        Import of equipment/prototype allowed
•       Guidelines for development of integrated Townships
including housing & building material notified
        100% FDI permitted
         minimum capitalisation norm - US$10 million for WoS & US$ 5
    million for JVs
        3 year lock-in period

                                                                                    19
Modes of Establishing Operations in India
                Project Office




     WoS                         Joint Venture




                 Branch Office
                                             20
FDI Approval Procedure

Automatic Route in most           Government Route for few
        Sector                            sectors




         RBI                                FIPB



No permission required, only         Approval is
to notify RBI within 30 days of      granted generally
issue of shares to foreign           in 30 days
investors                                                    21
Foreign Investment Policy

      Automatic route available in all
       sectors except
       Licensable items
       Multiple ventures of an investor in
        same/allied category
       Acquisition of existing shares
       Beyond notified policy



                                              22
Foreign Investment Policy (contd.)
         NO CAP ON FOREIGN EQUITY
         except for the following sectors:
         atomic     minerals,      banking,
         broadcasting, coal & lignite,
         telecom services (basic, cellular,
         GMPCS and certain value added),
         passenger     airlines,     defence
         industry, insurance, petroleum
         other than private refineries, and
         mining of diamonds and precious
         stones.
                                               23
Foreign Investment Policy (contd.)
                      FDI up to 100 % permitted on
NBFC’s
                      automatic route

                      FDI up to 49 % permitted
Banking
                      FDI up to 26% permitted on the
Insurance             automatic route subject to licensing


Broadcasting          FDI up to 49% permitted in uplinking
                      hub and up to 20% in DTH


MRTS                  FDI up to 100% permitted, including
                      associated real estate development
                                                             24
Foreign Investment Policy (contd.)
                  FDI up to 100 % permitted on automatic
                  route for non-licensable and non-
Drugs &           recombinant DNA technology category
Pharma
Hotels &          FDI up to 100% permitted on automatic
Tourism           route
Defence           FDI up to 26% permitted subject to
Industry          licensing

Telecom           FDI up to 74% in ISPs with gateways
Services          and limit raised from 49% to 74% in
                  radio paging and end-to-end bandwidth

Townships          FDI up to 100% permitted in integrated
                   townships and settlements                25
Foreign Investment Implementation Authority
                  (FIIA)
 • Provides pro-active one-stop after care service to foreign investors
 • Facilitates quick translation of FDI approvals into implementation
 • Sorts out operational problems and finds solution
 Supporting mechanism
     • Fast Track Committees
          review individual projects
          review and suggest deletion of redundant procedures
          simplify existing procedures
     • Nodal Officers for follow up of FDI cases in states                26
Important Features of Department’s Web Site
     Web Site: www.indmin.nic.in
     All the publications and forms for seeking
License, FIPB approval, etc. available in
downloadable format
     Present Status of Application Submitted for
FIPB and PAB Approvals are posted on the web site
    Chat Facility during 1600 to 1700 Hrs on Every
Working Day
     Bulletin Board facility for Seeking Clarifications
      on Complicated Matters ( Replies sent just after
      one day)
                                                           27
Foreign Direct Investment Annual Inflow
                 Cumulative FDI Approval 1991-2002(August): US$ 76.15 billion
                 Cumulative FDI Inflow 1991-2002 (August): US$ 30.98 billion

          6.00

                                                                                   4.7     4.8
          5.00                                               4.6
                                                                           4.0
US $ billion




          4.00
                                                                    3.4
                                                     3.0
          3.00
                                              2.2
          2.00
                                       1.0
          1.00                  0.6
                          0.3
                  0.1
          0.00
                 1991   1992    1993   1994   1995    1996   1997   1998   1999   2000-01 2001-02   28
Countrywise FDI approvals (1991- August 2002)




                                                29
Countrywise FDI inflows (1991- August 2002)




                                              30
Sectoral Distribution of FDI Inflows
                  (1991-August 2002)
                             Fuels
                             10%              Electrical
                                             Equipment
                                                13%
          Telecom
           13%




Chemicals (Other                                      Others
   than Fert.)                                         34%
      7%
      Services Sector
            8%

                Food Processing      Transportation
                   Industries           Industry
                      4%                                       31
                                          11%
Sectoral Distribution of Technology Transfer
            (1991- August 2002)

                               Transportation
                                  Industry
     Others                          8%
      48%
                                      Chemicals
                                     (Other than
                                      fertilizer)
                                         11%



                                     Metallurgical
                                       Industry
                                          5%
           Electrical
          Equipment
                              Industrial
              16%
                              Machinery
                                 12%                 32
Major MNCs in INDIA
Automobile        Chemicals & Pharma         Auto Components      Telecom
Fiat Auto        AKZO NOBEL                Denso Corporation   AT&T
Daewoo           CIBA India                Graziano            Swiss Telecom
Daimler Benz     Sinco Engg.               Robert Bosch        Deutsche Telekom AG
Ford             Bayer                     Carraro             Motorola
General Motors   EMS Inventa AG            SIAP S.P.A          STET International
Honda            Mining                     Toyota              Telesystem International
Hyundai          Ashton                    Power                Telstra Corp
Suzuki           American Exploration      Power Gen           SIET International
Toyota           Rio Tinto                 Siemens             Consumer Goods
Volvo            Oil & Gas                  ST Power System     Fosters
                  Hardy Oil & Gas           Miscellaneous        AB Electrolux
Trading
Metro Cash &     International Petroleum   Asea Brown Boveri   Kellogg
Carry GMBH        SHV Energy                Buhler*             Nestle SA
FIDIA            Unocal                    Schindler           Perfetti
Mitsubishi       Van Ommeren               Italcementi         Coca Cola
SHV Macro                                   Cerestar Holding    Pepsi
                                                                                        33
34

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Oct City Dipp

  • 1. Dr. R. N. Pandey Director Department of Industrial Policy and Promotion Ministry of Commerce and Industry 1
  • 2. INDIAN Reforms-The Philosophy Plug into the Global Economy FDI recognised as a Growth Driver Large scale economic reforms 2
  • 3. Attracting long-term Creating skilled employment foreign capital to Opportunities and Import supplement domestic of world Class managerial investment efforts, practices particularly in infrastructure and export competitive sectors FDI Developing attractive Promoting technology Configurations of and other linkages to locational advantages enhance domestic industry at global level competitiveness 3
  • 4. Global FDI trends 2000 s Record FDI flows of US$ 1.3 trillion in 2000 Developed world still favourite (over 75% of global share; mainly cross-border M&A) d US$ 240 billion to developing countries t Developing Asia gets US$ 143 billion, of which China and Hong Kong-China alone account for US$ 105 billion 1 Latin America gets US$ 86 billion t WHAT WE ARE REALLY LOOKING AT IS A SIGNIFICANT SHARE OF WHAT COMES TO ASIA 4 Source: UNCTAD WIR01
  • 5. % Share of Selected Countries in Total FDI Inflow in Developing Countries 1995 1998 1999 2000 Brazil 4.9 15.1 14.1 13.9 China 31.6 23.2 18.2 17.0 India 1.0 1.4 1.0 1.0 Malaysia 5.1 1.4 1.6 2.3 South Korea 1.6 2.9 4.8 4.2 Singapore 7.8 3.3 3.2 2.7 Thailand 1.8 2.7 1.6 1.0 Total Dev. 113.3 188.4 222.0 240.2 Countries (US$ Bn) 5
  • 6. Ratio of FDI Inflow (%) to Gross Domestic Product 1995 1998 1999 2000 Brazil 0.8 3.6 5.9 5.7 China 5.1 4.6 4.1 3.8 India 0.6 0.6 0.5 0.5 Malaysia 6.8 3.8 4.4 3.9 South Korea 0.4 1.7 2.6 2.2 Singapore 10.5 7.6 8.6 7.0 Thailand 1.2 4.6 3.0 2.0 6
  • 7. Sectoral Targets for Achieving 8% GDP Growth ( $7-8 Bn) Sector FDI Target (US$ Bn) Telecom 2.5 Power 1.2 Financial Services 0.8 LNG & Oil Exploration 1.0 Food & beverage 0.4 Transportation 0.4 Textiles 0.3 Ports 0.3 Chemicals & Petrochemicals 0.2 Hotels & Tourism 0.2 Real Estate 0.2 Roads 0.2 Civil Aviation 0.2 Dis-investment 0.5 Total 8.9 7
  • 8. AN IDEAL INVESTMENT DESTINATION  World’s largest democracy  Second largest emerging market (US$ 2.4 trillion)  Liberal Foreign Investment Regime  Skilled and competitive labour force  Amongst the highest rates of return on investment  Large domestic market  Independent judiciary 8
  • 9. Key Economic Indicators: GDP Growth Rate (1993-94 as base year) 9% 7.6% 7.8% 8% 7% 6.8% 6.40% Growth Rate (%) 6% 5.1% 5% 5.40% 4.0% 4% 3% 2% 1% 0% 6 1 7 8 9 0 E) -9 -0 -9 -9 -9 -0 (A 95 97 98 99 00 96 2 19 20 19 19 19 19 -0 01 20 9
  • 10. Key Economic Indicators: External sector Foreign Exchange Reserves (US$ billion) 80 56 48.8 48.33 70 46.64 49 42.5 43.6 63.93 Exchange Rate (Rs/US$) 60 37.2 42 35.5 54.15 50 33.5 35 42.26 40 38 28 30 30 26 21 22 20 17 14 10 7 0 0 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03(as on 11-10-02) 10
  • 11. INDIA: TRACING FIRST GENERATION REFORMS • Industrial delicensing • Liberal FDI regime • Freedom to invest & expand • Simplification of investment procedures • Tax rationalisation • Current Account convertibility • Public sector divestment • WTO compatibility – Patents, etc. 11
  • 12. The Reforms Process Ahead e Public sector divestment v Cutting fiscal deficit e Amendments to crucial economic legislations u Financial sector reforms Labour reforms Corporate governance a Meeting all multilateral commitments in terms of GATT, GATS, TRIPS, etc. 12
  • 13. Some Independent Studies • JBIC Survey 2002 ranks India as the 5th most promising investment destination • EIU’s ‘World Investment Prospects 2002’ projects steep growth in FDI inflows to India 13
  • 14. INVESTMENT OPPORTUNITIES INFRASTRUCTURE 10 year tax holiday for developers of SEZs/ Industrial Parks s 100% tax Exemption for 5 Years and 50% thereafter for two years for SEZ Units w 100% Tax holiday for 10 years for infrastructure undertakings 100% tax deduction for 10 consecutive assessment years to undertakings providing Telecom services 14
  • 15. INVESTMENT OPPORTUNITIES INFRASTRUCTURE INVESTMENT REQUIREMENT: US $ 347 Bn Sector Present Capacity Investment By Capacity Addition By 2006 2006 (US $ Bn) Power 1.1 7Lakh MW 1,11,500 MW 178 Telecom 37 M Lines 52 M Lines 55 Ports 344 MT 350 MT 7 Roads a. National Highways 58, 112 Kms 23,000 Kms 27 b. State Highways 1,37,119 Kms 60,000 Kms c. Super N. H. 4,000 Kms Urban Infrastructure 80 Service 15 Source: Rakesh Mohan Committee Report (1996-2006)
  • 16. Integrated Townships • FDI policy 100% FDI for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure facilities such as roads and bridges, mass rapid transit systems and manufacture of building materials • Incentives Ten years tax holiday to undertaking developing or operating and maintaining or developing, operating and maintaining infrastructure facilities such as; water supply project, water treatment system, sanitation and sewerage system or solid waste management system 16
  • 17. Industrial Parks • Concept Industrial Parks - Self contained island with developed plots/ pre-built factories, power, telecom, water and other high- quality infrastructural facilities for industrial, residential, and commercial areas • Incentives 100% tax exemption under section 80IA subsection 4(iii) of the IT Act, available to any undertaking engaged in developing, developing and operating or operating and maintaining an Industrial Park for ten consecutive years out of the fifteen years for the Industrial Park developed between 1.4.97 and 31.03.2006 and approved by Department of Industrial Policy and Promotion under the Industrial Park Scheme, 2002 notified vide S.O. No. 354(E) dated 01.04.2002 17
  • 18. Approval and Investment in Industrial Parks under Industrial Park Scheme, 2002 (Till 18.10.2002) Total No. of Industrial Parks Approved – 38 State No. of State No. of Industrial Industrial Parks Parks UP 5 Punjab 1 Gujarat 4 Tamil Nadu 2 West Bengal 3 Maharashtra 4 J&K 1 Andhra Pradesh 2 Pondicherry 3 Karnataka 11 Kerala 2 18
  • 19. Recent Initiatives on FDI • FDI up to 100% allowed in Tea sector, including tea plantations with prior Government approval • 100% FDI permitted on automatic route in Advertising & Films • Royalty on brand name/trademark payable as percentage of net sales • Guidelines for licensing production of Arms & Ammunition notified 26% FDI permitted 3 year lock-in period for transfer of equity from one investor to another Import of equipment/prototype allowed • Guidelines for development of integrated Townships including housing & building material notified 100% FDI permitted minimum capitalisation norm - US$10 million for WoS & US$ 5 million for JVs 3 year lock-in period 19
  • 20. Modes of Establishing Operations in India Project Office WoS Joint Venture Branch Office 20
  • 21. FDI Approval Procedure Automatic Route in most Government Route for few Sector sectors RBI FIPB No permission required, only Approval is to notify RBI within 30 days of granted generally issue of shares to foreign in 30 days investors 21
  • 22. Foreign Investment Policy Automatic route available in all sectors except  Licensable items  Multiple ventures of an investor in same/allied category  Acquisition of existing shares  Beyond notified policy 22
  • 23. Foreign Investment Policy (contd.) NO CAP ON FOREIGN EQUITY except for the following sectors: atomic minerals, banking, broadcasting, coal & lignite, telecom services (basic, cellular, GMPCS and certain value added), passenger airlines, defence industry, insurance, petroleum other than private refineries, and mining of diamonds and precious stones. 23
  • 24. Foreign Investment Policy (contd.) FDI up to 100 % permitted on NBFC’s automatic route FDI up to 49 % permitted Banking FDI up to 26% permitted on the Insurance automatic route subject to licensing Broadcasting FDI up to 49% permitted in uplinking hub and up to 20% in DTH MRTS FDI up to 100% permitted, including associated real estate development 24
  • 25. Foreign Investment Policy (contd.) FDI up to 100 % permitted on automatic route for non-licensable and non- Drugs & recombinant DNA technology category Pharma Hotels & FDI up to 100% permitted on automatic Tourism route Defence FDI up to 26% permitted subject to Industry licensing Telecom FDI up to 74% in ISPs with gateways Services and limit raised from 49% to 74% in radio paging and end-to-end bandwidth Townships FDI up to 100% permitted in integrated townships and settlements 25
  • 26. Foreign Investment Implementation Authority (FIIA) • Provides pro-active one-stop after care service to foreign investors • Facilitates quick translation of FDI approvals into implementation • Sorts out operational problems and finds solution Supporting mechanism • Fast Track Committees  review individual projects  review and suggest deletion of redundant procedures  simplify existing procedures • Nodal Officers for follow up of FDI cases in states 26
  • 27. Important Features of Department’s Web Site  Web Site: www.indmin.nic.in  All the publications and forms for seeking License, FIPB approval, etc. available in downloadable format  Present Status of Application Submitted for FIPB and PAB Approvals are posted on the web site  Chat Facility during 1600 to 1700 Hrs on Every Working Day  Bulletin Board facility for Seeking Clarifications on Complicated Matters ( Replies sent just after one day) 27
  • 28. Foreign Direct Investment Annual Inflow Cumulative FDI Approval 1991-2002(August): US$ 76.15 billion Cumulative FDI Inflow 1991-2002 (August): US$ 30.98 billion 6.00 4.7 4.8 5.00 4.6 4.0 US $ billion 4.00 3.4 3.0 3.00 2.2 2.00 1.0 1.00 0.6 0.3 0.1 0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000-01 2001-02 28
  • 29. Countrywise FDI approvals (1991- August 2002) 29
  • 30. Countrywise FDI inflows (1991- August 2002) 30
  • 31. Sectoral Distribution of FDI Inflows (1991-August 2002) Fuels 10% Electrical Equipment 13% Telecom 13% Chemicals (Other Others than Fert.) 34% 7% Services Sector 8% Food Processing Transportation Industries Industry 4% 31 11%
  • 32. Sectoral Distribution of Technology Transfer (1991- August 2002) Transportation Industry Others 8% 48% Chemicals (Other than fertilizer) 11% Metallurgical Industry 5% Electrical Equipment Industrial 16% Machinery 12% 32
  • 33. Major MNCs in INDIA Automobile Chemicals & Pharma Auto Components Telecom Fiat Auto AKZO NOBEL Denso Corporation AT&T Daewoo CIBA India Graziano Swiss Telecom Daimler Benz Sinco Engg. Robert Bosch Deutsche Telekom AG Ford Bayer Carraro Motorola General Motors EMS Inventa AG SIAP S.P.A STET International Honda Mining Toyota Telesystem International Hyundai Ashton Power Telstra Corp Suzuki American Exploration Power Gen SIET International Toyota Rio Tinto Siemens Consumer Goods Volvo Oil & Gas ST Power System Fosters Hardy Oil & Gas Miscellaneous AB Electrolux Trading Metro Cash & International Petroleum Asea Brown Boveri Kellogg Carry GMBH SHV Energy Buhler* Nestle SA FIDIA Unocal Schindler Perfetti Mitsubishi Van Ommeren Italcementi Coca Cola SHV Macro Cerestar Holding Pepsi 33
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