FDI inflows register unprecedented growth of 185% during the first quarter

During the financial year 2006-07, the FDI equity inflows have been US $ 15.7 billion as compared to US $ 5.5 billion received during 2005-06. This is a growth of 185% as compared to the previous year. This is also the first time that FDI equity inflows into India have crossed the US $ 10 billion mark. If reinvested earnings and other capital inflows are also included, the total inflows in 2006-07 add up to US$ 19.5 billion compared to US$ 7.7 billion during the same period last year showing a growth of 153%.

During the first quarter of the Financial Year 2007-08, the FDI inflows have been US$ 4.9 billion as against US$ 1.7 billion received during the corresponding quarter of 2006-07, registering a growth of more than 185%. The first six months of the current calendar year (January-June 2007) have witnessed FDI inflows of US$ 11.4 billion as against US$ 3.6 billion received during the same period in 2006.This indicates a growth of 218%.

Higlights of FDI inflows till May, 2007:-

• Major Sectors - Services, Telecom, Electrical Equipments, Real Estate and Transportation are the 5 major sectors receiving FDI inflows in 2007-08.
• Top Inflows - M/s. Vodafone (Mauritius) (US$ 801 million) (telecom), M/s. Matsushita Electric Works, Japan, (US $ 342 million) (electrical products), M/s. GA Global Investments Ltd., (US$ 258 million) (National Stock Exchange), M/s. EMAAR Holdings, Mauritius (US$ 204 million) (Real estate construction), M/s. L B India Holdings Mauritius Ltd. (US$ 118 million) (Real Estate) are the top foreign investments received during the current financial year.
• Leading Regions - Delhi Regional Office of RBI registered inflows of US$ 1.3 billion amounting to around 36% of the total inflows during the year. Mumbai, Bangalore, Chennai, and Hyderabad are the other major regions, which have received FDI inflows. The five regions mentioned above constitute two-thirds of the total inflows received.
• Top Investing Countries - The total inflows received from the top 5 investing countries during the first two months of the financial year are US$ 2.9 billion. Major investment (US$ 1.9 billion) during 2007-08 came from Mauritius. The other major countries investing are Japan, Cyprus, USA, and Singapore.

Source: Ministry of Commerce & Industry