The Hindu : Impressive growth in FDI inflows

Online edition of India's National Newspaper
Saturday, Aug 10, 2002

Business

Business

Impressive growth in FDI inflows

NEW DELHI AUG. 9. Foreign direct investment inflows registered an impressive growth of 87 per cent at $501 million (net of ADRs/GDRs) in May against $268 million in the same period last year.

As per latest data compiled by the Industry Ministry, FDI inflows continue to post impressive growth in the current calendar year with cumulative FDI inflows during January-May registering a growth of 60 per cent at $1.89 billion against $1.18 billion in the corresponding period a year earlier. The impressive growth has been achieved at a time when there has been a steep decline in global FDI flows.

The Government in May this year, approved 254 foreign collaboration proposals amounting to $471.2 million which in rupee terms amounted to Rs. 2,261.54 crores.

A sector-wise break-up reveals that telecommunications attracted the highest FDI approvals in May at $195.6 million cornering 41.51 per cent share of the total FDI approvals in the month. The services sector including both financial and non-financial services attracted $114.1 million accounting for a share of 24.22 per cent while fuels attracted the third highest with $47.8 million accounting for a share of 10.14 per cent.

Himachal Pradesh with $168.8 million accounting for a share of 35.83 per cent received the highest number of FDI approvals during May. New Delhi, Maharahstra, Gujarat and Goa were the other States in the top five.

In terms of actual FDI inflows in May, Chandigarh attracted the highest amount at $168.8 million garnering 35.07 per cent share of the total while New Delhi was in the second place with $88.8 million accounting for 18.44 per cent of the total inflows.

Among the sectors, electrical equipment including computer software with $216.7 million accounting for 45.01 per cent share attracted the highest amount of FDI inflows in May.

As per a country-wise break-up, the U.K. with $170.3 million accounting for a share of 35.37 per cent was the top investor country in FDI inflows. Mauritius with $119.4 million accounting for 24.81 per cent share was the second highest followed by the U.S. with $45.5 million accounting for 9.44 per cent of the total inflows. — PTI

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