The New Industrial Policy, 1991, opened new vistas for globalisation and the resultant growth of the Indian economy. Soon, Foreign Direct Investments (FDIs) became the major drivers of the industrial growth and capital markets. According to the ‘India FDI Fact Sheet – July 2009’ by the Ministry of Commerce and Industry, the quantum of FDIs increased to USD 35.17 billion in 2008-09 from USD 4.03 billion in 2000-01.
Mauritius (44%) remains the top investor in India, followed by Singapore (9%), US (8%), and UK (6%). Three most attractive sectors for FDI are financial & non-financial services (23%), computers (10%), and telecommunications (8%). The growth potential and revision of FDI norms for these sectors have led to an influx of investments by foreign entities.
Analysing the geographical trends, wide disparity is revealed among the states. In the terms of FDI equity inflows, Maharashtra (35.56%) and Delhi-NCR (17.78%) lead the pack. IT, ITES, and financial services hubs Karnataka (6.49%), Gujarat (6.2%), Tamil Nadu (5.36%), and Andhra Pradesh (4.12%) fall much behind. States, like Bihar and UP indicate negligible FDI inflows. Therefore, a lot is left to be desired in the terms of a balanced regional growth in India and the State Governments need to come up with concrete measures for attracting foreign capital in their regions.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
