 Major monetary source for economic development in India

 Since 1991 economic crisis and economic liberalisation FDI has steadily
increased in India
 India is top destination for the Foreign Direct Investment( Financial
Times,2015)
 Two routes by which India gets FDI - Automatic route and Government
route
 Sectors FDI Limit
Infrastructure 100%
Automotive 100%
Pharmaceuticals 74%
Service 49%
Railways 100%
Chemicals 100%
Textile 100%
Airlines 100%
 Total FDI (2017-18 ) - 37,366 (US$ million)

Sources (US$ million)

Mauritius 13,415
Singapore 9,273
Netherlands 2,677
USA 1,973
Japan 1,313
 Sector (US$ million)
Communication Services 8,809
Manufacturing 7,066
Retail & Wholesale Trade 4,478
Services 10248
Electricity and other energy Generation,
1,870
Distribution & Transmission
Construction 1,281
Transport 1,267
Restaurants and Hotels 452
Real Estate Activities 405
Education, Research & Development 347
Mining 82
 (US$ million) Communication Services

Manufacturing

Retail & Wholesale Trade

1%
1% 1% 0%
4% Services
4%
5% 24%

Electricity and other energy Generation,

Distribution & Transmission

Construction
28%

20%
Transport

12%
Restaurants and Hotels

Real Estate Activities

Education, Research & Development

Mining
 (amount* in USD million)

Guarantee Total Financial

Equity Loan
Month Issued Commitment

1 2 3 1+2+3
January 2019 236.04 260.79 176.75 673.58
February 2019 409.66 248.03 1,035.47 1,693.16
 India’s Net Outflow of FDI (2017) – 11.09 Billion
 UK announced that India has become the third largest source of FDI for them as
investments increased by 65 per cent in 2015 leading to over 9,000 new and
safeguarded jobs.
 Government of India’s Public Sector Undertakings (PSUs) have invested over US$ 15
billion in Russia’s oil and gas projects
 The Union Cabinet has permitted ONGC Videsh to acquire 11 per cent stake in
Russian oil company JSC Vankorneft from Rosneft Oil Co. for US$ 930 million.