NEW DELHI, Mar 1: The foreign direct investment (FDI) inflow since 1991 in the country has been only around 22 per cent of a total amount Rs 1,47,000 crore approved during the period 1991-97.According to official estimates, the amount of actual FDI inflow since liberalisation is around Rs 32,000 crore. This is contrary to government's claim of a huge inflow of foreign direct investment in the country, as the amount which has been actually invested is abysmally low.
In January-November 1997, the FDI inflow was Rs 11,156 crore as against an approved amount of Rs 51,030 crore. The amount of actual FDI inflow in 1996 was Rs 8440.5 crore compared to an approved figure of Rs 36,150 crore. In 1995, the approved FDI was Rs 32,070 crore while the actual was Rs 6370 crore.
The actual inflow of foreign direct investment includes approvals granted through the Foreign Investment Promotion Board and Secretariat for Industrial Assistance route; RBI's automatic approval and NRI scheme.
The fuels sector whichincludes power and oil refinery attracted the maximum FDI at 29 per cent of the total amount approved during the post liberalisation period (August 1991 to November 97). Telecommunications was the second highest at around 20 per cent of the total FDI approved in the same period. Besides telecom, the sector comprises of radio paging, cellular and basic telephone services, information and broadcasting. The services sector follows the telecom sector at 6.7 per cent of the total FDI approved, with the transportation industry (6.21 per cent); metallurgical industries (6.06 per cent) and electrical equipment (5.44 per cent). The services sector includes financial, non-financial, banking and hospital and diagnostic.
Automobiles, air and sea transport, passenger cars, auto ancillaries and ports are the specific areas in the transportation industry in which FDI was approved. Ferrous, non-ferrous, special alloys and mining has attracted FDI inflow under metallurgy.
The areas which contributed to the FDI approval inthe post-policy period besides electrical equipment are computer software and hardware and electronics.
Investments by France, Sweden, Australia, Bermuda, Saudi Arabia, Kuwait and the Southeast Asian countries including Thailand, Hong Kong, Indonesia, Philippines, Taiwan and Korea (south) dropped sharply in 1997 compared to the previous year. Iran and New Zealand did not contribute to the FDI last year.
On the other hand, US, UK, Japan, Mauritius, Germany, Netherlands, Switzerland and Canada increased the flow of investment in the country in 1997.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
