According to a study paper prepared by Mahim Bisht and Uma Tripathi of the Federation of Indian Chambers of Commerce and Industry (FICCI), FDI approval for proposals of Rs 1,685 billion (approximately $ 40 billion) for 1991-98 represent a 120-fold increase over the previous decade -- 1981-91.

In all, as many as 13,380 project proposals worth Rs 16,84,295.15 million, -- (Rs 1,685 billion or about $ 40 billion), -- were approved as per the figures put out by the industry ministry, the paper pointedout.

Leather, leather goods (0.15 per cent), pharmaceutical including medical and surgical appliances (0.60 per cent), paper and pulp (1.45 per cent) and textiles (1.63 per cent) were among the low-priority areas for foreign direct investors.

Infrastructure including roads, ports, telecom and fuels (54.86 per cent), basic engineering including metallurgical, electricity, industrial machinery, agricultural machinery etc (14.6 per cent) were among the top priority areas for FDI approvals during the 1991-98 post-liberalisation period.

While infrastrucutural attracted FDI proposals worth Rs 923,442.4 million during 1991-98, basic engineering, metallurgical, electricity, industrial machinery and agricultural machinery etc attracted proposals worth Rs 245,012.75 million during the 1991-98 period.

Fertilisers and chemicals including dye stuffs etc ranked third after infrastructure and engineering goods among priority areas for FDI proposals. Fertilisers and chemicals attracted Rs 113,156.68 millionaccounting for 6.72 per cent of the total foreign direct investment proposal approvals during the post-liberalisation period.

Some of the other sectors which attracted FDI proposals included consultancy and trading services (7.96 per cent), food and agro industries (6.4 per cent), hotel and tourism (2.06 per cent) and others (3.57 per cent).