Will FDI follow PM Narendra Modi's call

Written by ENS Economic Bureau | New Delhi | Updated: Aug 16 2014, 14:53pm hrs
InvestmentsFDI is prohibited in lottery business, gambling and betting, TDRs, atomic energy and railway transport (other than MRTS).
Prime Minister Narendra Modis call to foreign investors to invest in India comes at a time when foreign direct investments have somewhat dwindled, as compared to the highs that FDI inflows touched in 2011-12.

Here are a few facts:

1. The total Foreign Direct Investment (FDI) Inflows during the last three years and the current financial year (up to April 2014) is:

Financial Year/Total FDI inflow* (in US $ million)

2011-12 (P): 46,556

2012-13 (P): 34,298

2013-14 (P): 36,396

2014-15# (P): 2,597

(# up to April, 2014,*including NRIs)

2. FDI is prohibited in lottery business including government/private lottery, online lotteries, etc.; gambling and betting including casinos etc.; chit funds; trading in transferable development rights(TDRs); real estate business or construction of farm houses; atomic energy and railway transport (other than MRTS).

3. The 9th Global Capital Confidence Barometer, October 2013 a survey by Ernst & Young (EY) has reported that India is the top investment destination among emerging and developed markets.

4. The Government has also set up Invest India, a joint venture company between the Department of Industrial Policy & Promotion and FICCI, as a not-for-profit, single window facilitator, for prospective overseas investors and to act as a structured mechanism to attract investment focused on MSME Sector.