Revision as of 06:16, 3 April 2021

This is a collection of articles archived for the excellence of their content.

1 FDI in India: A timeline
2 Foreign companies registered in India
3 Amount invested
4 Countries that invest most in India
- 4.1 2000-19
- 4.2 2020
5 India’s share in global FDI
6 Regions that attract the most FDI
- 6.1 2017> 19: Top regions, sectors
7 Rules, changes in
8 FDI and the Financial Secrecy Index
- 8.1 2016
9 See also

FDI in India: A timeline

1991-2016

The Hindu, June 21, 2016

Twenty-five years of changes in FDI policy: highlights

1991

July: New industrial policy of Narasimha Rao government as part of the Union Budget presented by Manmohan Singh, which led to a substantive opening up of the Indian economy.

August: FDI up to 51 per cent opened up in 47 high-priority sectors, including software (with 34 sectors under automatic route), with a condition that capital goods imports be financed by foreign equity. Export trading firms, hotels and tourism businesses also allowed 51 per cent FDI.

Foreign Investment Promotion Board (FIPB) set up in the PMO to vet FDI proposals, with a Finance Minister-headed panel deciding on investments taking a call on FDI over Rs 300 crore.

1992

April: FDI in software also put on automatic route.

May: Use of foreign brand names allowed.

June: Dividend balancing norms for FDI-backed firms, linking dividend payments to export income, scrapped for all but consumer goods firms.

1994

October: FDI in Pharma up to 51 per cent put on automatic approval route, except for recombinant DNA technologies.

1996

FIPB transferred to Department of Industrial Policy and Promotion (DIPP); approvals up to Rs. 600 crore by Industry Minister, Cabinet Committee for nods over Rs. 600 crore.

November: Condition linking import of capital goods to foreign equity investments scrapped.

1998

October: 49 per cent FDI allowed in mobile telephony by satellite.

1999

January: FDI in construction of highways, toll roads and ports raised from 74 per cent to 100 per cent.

March: Timeline for considering FDI proposals slashed from six weeks to 30 days.

2000

March: Eases norms for 100 per cent FDI in NBFCs.

October: 26 per cent FDI in insurance sector.

2001

May: 100 per cent FDI in drug manufacturing and pharma, airports, hotel, tourisms, 26 per cent FDI in defence, 74 per cent in select activities of telecom sector, 49 per cent FDI in banking sector.

2004

January: 100 per cent FDI in petroleum product marketing, oil exploration, petroleum production and natural gas pipelines.

March: 74 per cent FDI in private banks.

2005

March: 100 per cent FDI in townships.

November: 74 per cent FDIin telecom, 20 per cent FDI in radio broadcasting.

2006

February: 51 per cent FDI in single brand retail.

March: 74 per cent FDI in telecom.

2008

March: 100 per cent FDIin airports, 74 per cent FDI in non-scheduled air transport services.

2009

January: 100 per cent FDI in fax publication of foreign newspapers, 26 per cent FDI in publication of Indian versions of foreign publications.

2011

November: 100 per cent FDI in brownfield pharmaceutical projects (earlier only in greenfield).

2012

January: 100 per cent FDI in single brand retail.

September: 52 per cent FDI in multi-brand retail. 49 per cent FDI in aviation companies, power exchanges. 74 per cent FDI in teleports, mobile TV.

2014

August: 49 per cent FDI in defence sector, 100 per cent FDI in some aspects of rail infrastructure.

2015

March, April: 49 per cent FDI in insurance, pension sectors.

2016

June: 100 per cent FDI in trading including through e-commerce, amendments to FDI in defence sector policy, 100 per cent FDI in teleports, DTH, mobile TV, 100 per cent FDI in brownfield aviation projects, 74 per cent FDI in private security agencies, amendments to FDI in animal husbandry policy, relaxing norms in single brand retail.

2004-16: FDI inflows into India

The Times of India, April 8, 2016

FDI inflows 2000-2015; Graphic courtesy: The Times of India, April 8, 2016

FDI Financing CAD First Time Since 2004

Ratings agency Moody's has said that net foreign direct investment (FDI) inflows have hit an all-time high in early 2016, highlighting the success of Narendra Modi's `Make in India' initiative. The ratings agency said that the FDI in flows have more than financed the current account deficit (CAD) for the first time since 2004. A country is known to be facing a CAD when the value of its imports is more than the value of its exports.

“The rise in FDI points to stronger investor interest in India on the back of ro bust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the `Make in India' initiative, are bearing fruit,“ said Moody's in a report released on Thursday .

Net FDI inflows into India hit an all-time high in January 2016 at $3 billion on a 12-month moving average basis. India's current account deficit is now more than covered by its FDI inflows. The basic balance (the sum of the current account balance and net FDI) returned to surplus in 2015 after being in deficit from 2003-2014.

This is good news for the do mestic currency whose value has been determined by capital flows due to the country's per manent trade deficit. The only dark cloud has been the drop in remittances. Money sent by overseas Indians dropped 30% year-on-year in the SeptemberDecember 2015 quarter due to turmoil in the Middle East economy . But Moody's said that In dia's external financing needs have diminished sharply over the last three years due to a crash in commodity prices.

On FDI, Moody's said that the development of industrial corridors, investment & manufacturing zones, and `smart cities' will further bolster investment inflows. “In particular, flows into the manufacturing sector are likely to accelerate as the government seeks to boost the sector's share of gross domestic product (GDP) to 25% by 2022.Government investment in infrastructure will help address some of India's deficiencies in this area and foster FDI,“ the report added.

2011-16

FDI inflows in India, year-wise, 2011-16; Graphic courtesy: The Times of India, June 11, 2016

See graphic, 'FDI inflows in India, year-wise, 2011-16'

2011-18

i) Foreign direct investment in India, 2011-18;
ii) The main countries from which Foreign direct investment comes into India; and
iii) The five main sectors that attract Foreign direct investment into India
From: June 9, 2018: The Times of India

See graphic:

i) Foreign direct investment in India, 2011-18;
ii) The main countries from which Foreign direct investment comes into India; and
iii) The five main sectors that attract Foreign direct investment into India.

2014-19

FDI inflows into India, year-wise, 2014-19
From: August 29, 2019: The Times of India

See graphic:

FDI inflows into India, year-wise, 2014-19

2017: inflows decreased 9%, outflows doubled

FDI into India slipped 9% to $40bn last year: UN report, June 8, 2018: The Times of India

Foreign Direct Investment (FDI) to India decreased 9% to $40 billion last year from $44 billion in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN.

According to the World Investment Report 2018 by the UN Conference on Trade and Development (UNCTAD) global foreign direct investment flows fell by 23% in 2017, to $1.4 trillion from $1.9 trillion in 2016. “Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries,” UNCTAD secretarygeneral Mukhisa Kituyi said.

FDI to India decreased from $44 billion in 2016 to $40 billion in 2017. But outflows from India, the main source of FDI in South Asia, more than doubled to $11 billion, the report said.

The report cited India’s state-owned oil and gas company ONGC’s active investment in foreign assets in recent years. After acquiring a 26% stake in Vankorneft, an affiliate of Russia’s national oil company Rosneft PJSC, in 2016, ONGC bought a 15% stake in an offshore field in Namibia from Tullow Oil in 2017. By the end of 2017, ONGC had 39 projects in 18 countries, producing 285,000 barrels of oil and oilequivalent gas per day, the report said.

3% growth in FDI slowest in four years

June 8, 2018: The Times of India

Foreign direct inflows into India rose 3% to $62 billion during 2017-18, the slowest pace of expansion since the Narendra Modi government came to office four years ago. FDI inflows during the previous financial year were estimated at a shade over $60 billion.

The slowdown in growth in FDI flows comes even as domestic private investment has remained muted, which commerce and industry minister Suresh Prabhu said was on account of surplus production capacity now getting used up.

He said that during the four years of the Modi government, foreign inflows jumped to $223 billion from $152 billion in the previous four-year period.

2016

Sectors where 100 per cent foreign investment was already permitted , India Today , June 23,2016

India: World's top greenfield FDI destination

India retains world's highest FDI recipient crown: Report, May 25, 2017: The Times of India

HIGHLIGHTS

India attracted USD 62.3 billion in 2016, says the FDI Report 2017

India has remained ahead of China and the US as far as FDI inflows were concerned in the last year, it states.

FDI by capital investment saw an increase of 2 per cent to USD 62.3 billion in 809 projects during 2016 in India

India retained its numero uno position of being the world's top most greenfield FDI investment destination for the second consecutive year, attracting US $62.3 billion in 2016, says a report.

India has remained ahead of China and the US as far as FDI inflows were concerned in the last year, said the fDi Report 2017 compiled by fDi Intelligence, a division of The Financial Times Ltd.

FDI by capital investment saw an increase of 2 per cent to US $62.3 billion in 809 projects during 2016 in India.

"India managed to keep the crown as the world's number one location for greenfield capital investment for the second year running - ahead of China and the US," the report said. The report said, global investment landscape has changed considerably in 2016 as FDI gravitated to locations experiencing the strongest economic growth, while locations in recession or facing high levels of uncertainty saw major declines.

In 2016, greenfield FDI continued to rise worldwide, with capital investment increasing by more than 6 per cent to US $776.2 billion, its highest since 2011, alongside an increase in job creation by 5 per cent to 2.02 million. The number of FDI projects, however, declined 3 per cent to 12,644. China has overtaken the US to become the second biggest country for FDI by capital investment, recording US $59 billion of announced FDI, compared with US $48 billion-worth in the US.

Globally, the real estate sector has claimed the top spot for capital investment, with US $157.5 billion of announced FDI recorded in 2016, following an increase of 58 per cent. In value terms, coal and natural gas witnessed an inflow of US $121 billion, followed by alternate and renewable energy at US $77 billion.

Defence

Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 23 6 2016

FDI in defence , India Today , July 4,2016 Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 23 6 2016

Pharma

Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang , 23/6/2016

FDI in Pharma , India Today , June 23, 2016

India at Global level

See graphic

Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 4/7/2016

India Today , July 4,2016

Retail

See graphic

Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 4/7/2016

India Today , July 4 ,2016

2017-Mar 2018, FDI inflow, state-wise

Sangeetha Kandavel and Sanjay Vijayakumar, Karnataka sees 300% jump in FDI inflows, T.N. rebounds, July 23, 2018: The Hindu

The graph shows change in FDI in 2017-18 compared to 2016-17 across various RBI offices
From: Sangeetha Kandavel and Sanjay Vijayakumar, Karnataka sees 300% jump in FDI inflows, T.N. rebounds, July 23, 2018: The Hindu

Services sector top recipient despite 23% drop

Karnataka registered the biggest increase in Foreign Direct Investment (FDI) last year, as inflows from overseas jumped 300% in the 12 months ended March 2018. Tamil Nadu too saw a rebound reversing a slowdown in the preceding period, while Gujarat, Maharashtra and Andhra Pradesh all saw a drop in FDI inflows, data from the Reserve Bank of India (RBI) presented in Parliament show.

While Karnataka received $8.58 billion in 2017/18, a sharp increase from the $2.13 billion in the previous fiscal, Tamil Nadu netted $3.47 billion, a 56% increase from the $2.22 billion in the prior period, as the State appeared to buck concerns about the investment climate. Investment had halved in 2016/17 from the previous 12 months ($4.53 billion) in an election year that also saw some political uncertainty in the wake of then Chief Minister J. Jayalalithaa’s hospitalisation and demise.

The data from the Chennai Regional Office of the RBI, covers Tamil Nadu and Puducherry.

Other major states Maharashtra, Gujarat and Andhra Pradesh saw a dip in FDI inflows, according to Minister of State for Commerce and Industry C.R. Chaudhary, in a written reply to the Lok Sabha on Monday.

Data from the Mumbai office of RBI, which covers Maharashtra, Dadra and Nagar Haveli, Daman and Diu, show inflows dropped to $13.4 billion in 2017/18 from $19.7 billion. FDI inflows into Gujarat fell almost 38% to $2.09 billion in 2017-18, from $3.37 billion.

Andhra Pradesh saw FDI inflows drop 43% to $1.25 billion in 2017/18.

Biswajit Dhar, Professor at Centre for Economic Studies and Planning in the School of Social Sciences at Jawaharlal Nehru University, pointed out that there was no way to assess whether the inflows were helping a State in its development efforts.

“When you look at the breakdown of FDI, it has a lot of components to it – firstly, you have long term inflows and then you have short term inflows like private equity,” he pointed out.

Overall, sector-wise investment data show that computer software and hardware gained from a 68% jump in FDI last year to $6.15 billion.

Interestingly, the services sector which comprises finance, banking, insurance and outsourcing among others, remained the top recipient of FDI despite seeing a 23% decline in inflows at $6.71 billion.

2019-20: 18% growth

FDI inflows surge 18% in 2019-20 to record $74bn, May 29, 2020: The Times of India

FDI inflow into India, 2015-20.
From: FDI inflows surge 18% in 2019-20 to record $74bn, May 29, 2020: The Times of India

India’s FDI inflows, including reinvested earnings, rose 18% to a record $73.5 billion during 2019-20, buoyed by a spurt in inflows into computer hardware & software, telecom, and hotel & tourism, while services, the traditional mainstay, witnessed a decline.

Excluding reinvested earnings, inflows were 14% higher at just a shade under $50 billion, which is also an all-time high. In fact, the large flows acted as a counterweight to low FII inflows during the year, which were estimated at $247 million (on a net basis) during the last financial year.

The data naturally led to some celebration in government, given the overall gloomy economic situation and weak domestic investment. “In another strong vote of confidence in Make in India, total FDI into India grew 18% in 2019-20 to reach $73 billion. Total FDI has doubled from 13-14 when it was only $36 billion. This long-term investment will spur job creation,” commerce and industry minister Piyush Goyal tweeted.

The year saw several large deals, involving overseas, with large inflows expected during the current year as well, with Reliance Jio alone announcing several transactions so far. Besides, some of the earlier announcements such as Saudi Aramco’s stake acquisition in Reliance Industries and Brookfield’s proposed investment in the tower arm are pending.

While Maharashtra remained the top destination for overseas investors, Karnataka came second, although data for the October-March period was released by the department for promotion of industry and internal trade.

In terms of the countries, Singapore remained the top source for the second straight year, although inflows from the island nation dropped almost 10% to $14.7 billion. Mauritius was a distant second with investments of $8.2 billion routed via India’s close ally, with a sharp spike seen from the Netherlands, with inflows rising 1.7 times to $6.5 billion.

2020

January 26, 2021: The Times of India

India and the world, % change in FDI inflows in 2020
From: January 26, 2021: The Times of India

FDI equity inflows distribution India FY2020 by sector
From: March 30, 2021: The Times of India

See graphics:

India and the world, % change in FDI inflows in 2020

FDI equity inflows distribution India FY2020 by sector

FDI inflows into India jump by 13% to $57bn in 2020: UN

At $163Bn, China Pips US, Becomes Largest Global Recipient

New Delhi:

India witnessed a 13% rise in foreign direct investment (FDI) to $57 billion in 2020 compared to the previous year. The domestic figure was boosted by investments in the digital economy, while China overtook the US as the largest recipient of FDI globally, according to an UNCTAD report.

India and China were the only two countries which saw FDI rising in 2020, while the rest of the world, including developed economies such as the UK and the US, saw sharp declines. This was revealed by the UNCTAD’s investment trends monitor’s findings.

India’s FDI inflows were propped up by acquisitions in the digital economy. The report said cross-border M&A sales grew 83% to $27 billion, a notable deal being the acquisition of nearly 10% of Jio Platforms by Jaadhu — owned by Facebook — for $5.7 billion. It also said that infrastructure and energy propped up M&A deal values in the country. The Indian economy is staging a sharp recovery after plunging to record levels due to the impact of the strictest lockdown imposed to prevent the spread of the deadly Covid.

The report said China became the largest recipient of FDI, attracting an estimated $163 billion in inflows, followed by the US with $134 billion. It said that in relative terms, flows declined most strongly in the UK, Italy, Russia, Germany, Brazil and the US. FDI inflows to China increased by 4% compared to the previous year.

The pandemic triggered havoc across global economies and the report said global FDI collapsed in 2020, falling by 42% to an estimated $859 billion from $1.5 trillion in 2019. It said that FDI finished 2020 more than 30% below the trough after the global financial crisis. Flows to developed countries fell drastically by 69% to values last seen 25 years ago.

FDI in Asean — an engine of FDI growth throughout the last decade — was down by 31%.

UNCTAD said global FDI flows will remain weak in 2021. “The uncharacteristic immediacy of the FDI reaction to the crisis caused by the pandemic was due to physical lockdowns and other mitigation measures making the implementation of ongoing projects more difficult but the effects of the recession will linger and an FDI recovery is not expected to start before 2022. Investor uncertainty related to further waves of the pandemic and to developments in the global policy environment for investment will also continue to affect FDI,” the report cautioned.

Foreign companies registered in India

2014:Foreign companies in India,state-wise

The Times of India

Feb 09 2015

DESTINATION INDIA

As of December, 2014, there were over 4,000 foreign companies registered in the country. Of these, a little over 79% were active.Interestingly. the national capital had the highest number of such companies. It was followed by Maharashtra, Karnataka, Haryana and Tamil Nadu, usually perceived as some of the most industrialized states. The relatively large number of companies registered in Haryana seems to be linked to MNCs located in Gurgaon, one of the NCR's leading business hubs

Amount invested

FDI by G20 nations: 2000-15

The Times of India ,Sep 02 2015

FDI in India by G20 nations (April 2000-March 2015); Graphic courtesy: The Times of India ,Sep 02 2015

Kounteya Sinha

UK leads G20 nations flow to India in FDIHOT The latest data to confirm Britain's increasing interest in investing in India will make PM Narendra Modi happy a couple of months before he embarks on his maiden visit to the United Kingdom. The UK has become the largest investor in India among all G20 countries with a combined revenue of more than $54 billion in India.

Between the year 2000 and 2015, UK's FDI into India amounts to $22 billion -9% of all FDI in the country .

In total, G20 nations invested $ 73.9 billion in India between 2000-2015 with the UK being the single largest G20 investor into India followed by Japan ($ 18.3 bn), the US ($13.7bn), Germany ($ 7.6 bn) and France ($ 4.5 billion).

As India's largest employer, UK firms employ around 691,000 people across the country -5.5% of total organized private sector jobs in the country . Between 2000 and 2015, UK FDI generated around 138,000 direct jobs, 7% of the total 1.96 million jobs generated by FDI in India.

India's massive talent pool was the main reason for 63% of the British companies to believe in India's potential while India's recent growth story made 86% of them turn to interest towards the Asian giant. English being an official language has helped, too, with 53% of the companies relying on it while 40% said it was the country's stable government.

Confederation for British Industry's first Sterling Assets India report sponsored by PwC UK and brought out in association with the UK India Business Council says that Maharashtra and Delhi have attracted the bulk of Britain's FDI into India -26% and 20% respectively .

The chemicals sector attracts the lion's share of British investment in India, at $5.78 billion (26% of UK FDI), followed by the pharmaceutical sector at $3.76 billion (17% of UK FDI) and the food processing sector at $3.05 billion (14% of UK FDI).

Katja Hall, the confederation's deputy DG, said, “The economic relationship between India and the UK is in fine fettle. The UK has played a significant role in India's growth journey , investing more and creating more jobs than any other G20 nation.PM Modi's steps to improve the ease of doing business in India are a great boost and we look forward to the EU-India FTA talks resuming.“

60% increase, Oct 2014-Sept 2016

FDI jumps 60% in Oct 2014-Sept 2016, Nov 22 2016 : The Times of India

FDI went up 60% to $77.9 billion after the launch of `Make in India' initiative in September 2014, the government said on Monday.

Commerce and industry minister Nirmala Sitharaman said that after the launch of this initiative, there has been an “unprecedented“ increase in FDI into the country.

“During the period October 2014 to September 2016, total FDI equity inflows of $77.9 billion was recorded as against $48.5 billion received during the preceding 24 months with an increase of 60%,“ she said in a written reply to the Lok Sabha.

Make in India was launched with an aim to promote India as an important investment destination and a global hub for manufacturing. Replying to a separate question, she said a total of 19,666 comp laints were received by the National Consumer Helpline during April-October this year. In 2015-16, this number was 23,955.

“24 e-commerce companies were incorporated registered in India during the last two years (2014-15 and 2015-16),“ she added.

Private Equity (PE) investments: 2014, 2015

The Times of India, Oct 22 2015

PE investments: Jan-Sept 2015; Graphic courtesy: The Times of India, Oct 22 2015

Reeba Zachariah

PE inflows may hit record $20bn in 2015

If the last nine months of private equity (PE) activity are any indication, PE investments are poised for a strong finish in 2015. Bain Consulting, the leader in consulting to PE firms in India and globally , predicts that PE transactions will touch a record $20 billion this year, higher than the previous record of $17.1 billion in 2007.Heightened financing in consumer technology space and bigticket investments in real estate and financial services will propel PE activity to hit a new high this calendar. PE investments for the first nine months of 2015 have al ready hit $16.7 billion, outpacing 2014's total PE deal value of $15.2 billion. “The growth trend indicates that PE investment activity this year will surpass 2007, which was the best period so far,“ said Madhur Singhal, consulting principal, private equity practice, Bain Consulting.

The deal activity has been chiefly driven by the country's booming consumer technology sector, which attracted $5.4 billion of investments, followed by real estate and financial services with $3.6 billion and $2 billion, respectively , during the first nine months of 2015.

Bain Consulting's PE deals database doesn't include transactions where deal value is not disclosed. The three sectors accounted for 65% of the total deal value in the January-September period of 2015 and are expected to keep up the momentum in the October to December period too. “The consumer tech space needs more capital to scale up and will continue to attract more private equity ,“ Singhal said. Early-stage and growth investments dominated 85% of the deals in the first nine months of 2015.

PE funds such as Tiger Global, Blackstone, Temasek, Advent, SoftBank, Actis and GIC have invested about $125 billion in 5,400 deals between 2005 and September-end of 2015. However, exits from portfolio companies continue to remain challenging.Many funds have been forced to hold on to their investments for a longer number of years than originally envisaged.

Exits reached $4.5 billion in the first nine months of this year, driven by public market and secondary sales. Real estate, financial services and telecom witnessed the highest number of exits. The top 10 big-ticket exits, including TPG Capital selling its stake in Shriram City Union Finance for $386 million and New Silk Route offloading its interest in PNB Housing Finance for $257 million, constituted 40% of the total PE exit value in the first nine months of 2015.

Confusion over Financial Times figures

The Times of India, Oct 01 2015

Foreign Fund flows in India, 2014-15; Graphic courtesy: The Times of India, Oct 01 2015

Subodh Varma

RBI pegs fund flow at $20.6Bn in first half of 2015 against FT estimate of $31Bn

A recent report by a data consultancy owned by the FT of London created a stir by estimating that India is now the most favourite destination for foreign direct investment, beating China and the USA. The fine print indicates that they are talking about “estimated capital expenditures“ in greenfield, that is, new ventures. By this estimate, India attracted $31 billion compared to China's $28 billion in the first half of 2015. Reserve Bank of India (RBI) data for foreign investment flows does not appear to reflect this, causing much puzzlement in India. The total foreign direct investment that flowed into India between January and June 2015 is pegged at $20.6 billion. If you deduct the outflow from India in the form of outgoing FDI from India, this gets pared down to $19 billion.

Besides this inflow, there is also foreign portfolio investment mainly by institutional investors in the stock market. This was about $17 billion in the first half of 2015.

When put together, these two components of investment direct and portfolio yields about $31.5 billion for the same period. But this could hardly be what the FT report is talking about since much of this is neither greenfield nor capital investment.

The other puzzling aspect of the FT report is the com parison with China.

According to the National Statistical Bureau of China, foreign direct investment into China in the first half of 2015 was a whopping $68.4 billion, more than three times that of India's $20.6 billion, between January and June 2015.

A comparison of RBI data between the first halves of 2014 and 2015 shows that incoming FDI has increased by about 16% in 2015 but outgoing FDI has drastically declined, probably due to weakening economies around the world. Hence net FDI inflow to India has jumped up from $8.8 billion to $19 billion.

Analysis of this data by India's Department of Industrial Policy and Promotion (DIPP) indicates that most of the foreign direct investment has come into the IT sector followed by automobiles, trade and the financial sector. Major sources of FDI in India remain Singapore and Mauritius followed by the Netherlands, US and Germany .

Net portfolio investment has, however, sharply declined by about 23% from $21.7 billion in the first half of 2014 to $16.8 billion in the comparable period of 2015.

As a result of these opposing trends, the net foreign flows into India have shown only a marginal increase from $30.5 billion to $31.5 billion between the first halves of 2014 and 2015.

2013-19

Foreign Direct Investment (FDI): India: 2013-19
From: Sidhartha, May 28, 2019: The Times of India

See graphic :

Foreign Direct Investment (FDI): India: 2013-19

Countries that invest most in India

2000-19

Sidhartha, May 29, 2019: The Times of India

Singapore’s investments in India vis-à-vis Mauritius’: 2009>2019
From: Sidhartha, May 29, 2019: The Times of India

Foreign direct investment (FDI) inflows from Singapore were twice that from Mauritius during the last financial year as companies opted to route funds into the country via the southeast Asian city-state, instead of the island nation in the Indian Ocean, the most preferred route for overseas flows so far, after the tax treaty with both the countries was reworked.

In 2018-19, inflows from Singapore were estimated at $16.2 billion, compared with $8.1 billion from Mauritius, latest government data showed. This is only the third time inflows from Singapore have topped those from Mauritius, with investment advisers attributing the change to the revamped tax treaty. After 33 years, India and Mauritius had agreed to amend the tax treaty, allowing authorities there to tax capital gains on transfer of Indian shares acquired from April 2017.

‘PE investors in S’pore boost FDI into India’

A similar amendment was made in the tax treaty with Singapore, which also came into force from April 1, 2017. Unlike the tax treaty with Singapore, the original pact with Mauritius did not require “significant presence”.

As a result, since April 2000, 32% of the inflows have come through Mauritius because investors from the US, the UK and Germany too opted to route their investment via this window. Tax consultants said given the parity in tax treatment now, investors are preferring to route investments via Singapore.

“The choice of source of investment depends a lot on the bilateral tax agreement. Besides, Singapore offers other advantages on the ease of doing business front,” said Dhiraj Mathur, who was involved with FDI policy before turning a consultant.

Akash Gupt, partner and leader for regulatory practice at PwC India, said the presence of a large number of private equity investors in Singapore also helped boost inflows into India. “Now that there is tax neutrality, people are opting for Singapore as it is more accessible and approachable and offers tax incentives through lower tax rates if you locate your regional headquarters there,” added EY India’s Rajiv Chugh.

Besides, companies such as Walmart, which acquired Flipkart in a $14 billion deal, made the payments in the island nation as the e-tailer was registered in Singapore. As a result, the fresh investment of $2 billion came through Singapore. The change is significant since a decade ago, inflows from Mauritius were almost four times the investment from Singapore. The full year FDI data also showed FDI into the country went up 6% to top $64 billion.

2020

Biggest sources of FDI inflows, April- December 2020
From: March 10, 2021: The Times of India

See graphic:

Biggest sources of FDI inflows, April- December 2020

India’s share in global FDI

2014: India no.9 in the world

India and the world: The 15 countries that received the highest FDI in 2014. India was no. 9; Graphic courtesy: The Times of India, October 5, 2015

See graphic: 'India and the world, The 15 countries that received the highest FDI in 2014. India was no 9'

2015: India no. 1 destination

India and the other top nine FDI destinations: Jan-Jun 2015; Graphic courtesy: The Times of India, Sep 30 2015

The Times of India, Sep 30 2015

EY analyses why India is suddenly the most favoured investment destination in 2015; Graphic courtesy: The Times of India, October 15, 2015

India pips US, China as No. 1 FDI destination

Rises 16 llaces in ranking of competitiveness

India has emerged on top of the foreign direct investment (FDI) league table, overtaking China and the US, according to fDi Markets, the FT data service. A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US.

India has also moved up on the World Economic Forum's Global Competitiveness Index by 16 places to 55th position from 71st.

The two reports come as a shot in the arm for the Modi government, which has taken several steps to attract foreign investment and has helped revive the mood of investors since it came to office in May 2014.

“Satisying, our efforts are paying off,“ finance minister Arun Jaitley tweeted.

The government has unveiled several initiatives like `Make in India' and `Digital India' to lure investors.

It has moved to ensure that the country moves up on the World Bank's Ease of Doing Business and states have also started their clean-up act on this parameter.

But experts say there are several areas where the government needs to step up reforms. The areas where investors want more reforms include tax policy, labour laws, cutting red tape and issues linked to land acquisition.

Investors have started taking interest in India and the recent visit of PM Modi to Silicon Valley triggered enormous interest from software and technology czars. India's growth is expected to be the fastest among large economies. Several multilateral agencies have also pointed out that India is a beacon of hope at a time when emerging economies are taking a hit and the Chinese stock market is witnessing volatility. Experts say India is expected to benefit from the slowdown in China and the overall sluggishness in global commodity prices including crude oil is expected to provide a cushion to the growth fortunes of Asia's third largest economy . The government is confident of achieving close to 8% growth in the current fiscal year. India has also moved up on Global Competitiveness Index by 16 places to 55th position.

The FT said that for the past several years, China and the US have vied for FDI supremacy and fought each other nearly to a draw last year, with the US ranking as the number one greenfield destination by number of projects and China coming in first by capital expenditure.

It said India ranked fifth last year for capital investment, after China, the US, the UK and Mexico. In a year when many other major FDI destinations posted declines, India experienced one of 2014's best FDI growth rates, increasing its number of projects by 47%, the article said.

“India is tracking well ahead of where it was at this time last year: it has more than doubled its midyear investment levels, attracting $30 billion by the end of June 2015 compared with $12 billion in the first half of last year,“ the newspaper said.

“Research from fDi Markets found 97 of 154 countries typically classed as emerging markets experiencing declines in capital expenditure on greenfield investment projects in the first six months of this year compared with the same time period last year,“ it said.

2016: India was among Top 15, but got 2% of global FDI

See graphic:

Biggest FDI destinations, 2016; Annual growth rate among top FDI recipients, 2006-16

Biggest FDI destinations, 2016; Annual growth rate among top FDI recipients, 2006-16
From: November 23, 2017: The Times of India

FDI confidence: India 8th in 2017, 11th in 2018

India ranks 11th in FDI confidence, May 3, 2018: The Times of India

India was ranked 11th in A T Kearney’s FDI confidence index and retained its position as the second highest ranking emerging market.

But, India was down three notches in the overall ranking from last year. US topped the list, followed by Canada, while Germany dropped to the third place. Overall, India remains among the top investment destinations due to its market size and rapid economic growth.

“We are in a very exciting space of growth, opportunity and transformation. For long, India has been a very exciting destination for investors. Now, especially with the current political stability and positive reforms environment, India will only gain its attractiveness as an investment destination,” said Vikas Kaushal, MD and country head, A T Kearney India. The IMF projects India’s economy will grow by 7.4% in 2018, the fastest growth rate of any major economy. Inward FDI flows already increased to an estimated $45 billion in 2017, a record high.

2017: India moved to top 10 FDI-hosts

June 10, 2018: The Times of India

India has moved up a notch to enter the top 10 FDI host economies in 2017 despite the challenging condition of global foreign direct investment flows.

According to the World Investment Report 2018, global flows of FDI fell by 23% in 2017, largely due to contraction across developed economies. FDI flows across developing economies, especially in Asia have remained stable, even though the growth has been flat, according to the commerce ministry.

“2018 is slated to be a tough year with the slowing pace of international production and stagnation of growth in GVCs. Having said that, the Ministry of Commerce & Industry working on critical aspects such as modernising existing bilateral, multilateral and plurilateral treaties, and releasing the new industrial policy focussed on making the Indian industry future ready,” a statement from the ministry said.

Data showed FDI inflows into India rose 3% to $62 billion during 2017-18, the slowest pace of expansion since the Modi government came to office four years ago. FDI inflows during the previous fiscal were estimated at a shade over $60 billion.

2017: 11% dip in FDI for India

October 30, 2018: The Times of India

India and other major economies: FDI received, and
Change over 2016
From: October 30, 2018: The Times of India

Other major Asian FDI destinations, 2017
From: October 30, 2018: The Times of India

Despite a downturn in investment, Asia remained the largest recipient of foreign direct investment (FDI) in 2017, attracting over 36% of global FDI — up from nearly 28% in the previous year. The US retained the top slot, while China remained the favourite destination in Asia. India, however, saw an 11% dip in FDI flow to $40 billion.

See graphics:

India and other major economies: FDI received, and
Change over 2016

Other major Asian FDI destinations, 2017

2018: India, 5^th most attractive investment destination

Sidhartha, Global CEOs see India as 5th most attractive investment destination, January 22, 2018: The Times of India

Top 10 investment destinations (2018)
From: Sidhartha, Global CEOs see India as 5th most attractive investment destination, January 22, 2018: The Times of India

See graphic:

Top 10 investment destinations (2018)

India moved up a notch to overtake Japan as the fifth most attractive investment destination in a survey of global CEOs, even as the International Monetary Fund said that the country will once again emerge as fastest growing major economy in 2018 amid signs of an improvement in the overall economic environment.

In a survey conducted by consulting firm PricewaterhouseCoopers, chief executives said that excluding their home market they are most likely to invest in the US, followed by China with the world's largest economy expanding its gap as corporate chiefs expect more rapid growth in America. While China held on to its popularity, India moved a up slightly but still trailed Germany and the UK as an investment destination.

The survey will come as a booster for Prime Minister Narendra Modi who will court international investors+ on Monday and Tuesday in a bid to get more investment into the country, especially in the manufacturing sector, which has remained sluggish and is crucial to job creation.

"Backed by definitive structural reforms, the India story has been looking better in the past one year. Most of our clients are optimistic about their growth. The government has made efforts to address concerns around areas like infrastructure, manufacturing and skilling, although newer threats like cybersecurity and climate change are beginning to play on the minds of our clients," said Shyamal Mukherjee, chairman, PwC India.

Aided by opening up of several key sectors over the last few years, foreign direct investment in India surged 17% to over $25 billion during the first half of the current financial year, even as private investment has remained muted due to excess capacity and high financial stress. It had for the first time topped $60 billion in 2016-17 but remains less than half of China's $137 billion in 2017, which was an increase of around 8%.

But IMF on Monday reiterated its earlier estimate that India will grow 7.4% in 2018 and accelerate to 7.8% in 2019 from 6.7% last year. In contrast, China, which IMF estimates suggested grew 6.8%, a ad faster than India, is estimated to slow down to 6.6% in 2018 and further to 6.4% next year.

At a press conference, IMF chief Christine Lagarde urged global policymakers to "fix the roof" while the going was good, calling for a more inclusive development strategy as nearly one-fifth of developing and emerging economies saw their per capita income decline in 2017.

She also asked for structural or fiscal reforms and called upon leaders to put together a robust global collaboration to fight corruption, improve conditions for trade, stop tax evasion and prevent catastrophic climate change.

2018: India overtakes China

India pips China in attracting FDI in 2018, December 29, 2018: The Times of India

Inbound M&A values in India and China, 2013-18
From: India pips China in attracting FDI in 2018, December 29, 2018: The Times of India

For the first time in years, annual foreign direct investment (FDI) into India has been more than that in China in 2018.

Riding on mega deals by Walmart’s buyout of online retail marketplace Flipkart, along with acquisitions by Unilver and Schneider Electric, the year that will end soon has recorded inbound M&A deals worth $39.5 billion in India, compared to $33 billion in China, data from Dealogic showed. In 2017, China’s inbound M&A deals aggregated at $32.5 billion, which was almost 80% more than India’s $18.6 billion.

For India, relatively stable economic fundamentals with low inflation rate, strict management of fiscal deficits and introduction of a bankruptcy code tilted the country among investment destinations among global investors. On other hand, for China, ensuing trade war with the US is keeping foreign investors on the back foot, market players said.

Going into 2019, foreign investors feel India will still remain an attractive investment destination.

Regions that attract the most FDI

2017> 19: Top regions, sectors

Allirajan M, NCR overtakes Maha as top destination for FDI equity, March 4, 2019: The Times of India

The six regions that attracted the most FDI, 2017> 19.
From: Allirajan M, NCR overtakes Maha as top destination for FDI equity, March 4, 2019: The Times of India

Share Of Inflows Rises From 14% To 25% In 3 Yrs

The National Capital Region has pipped long-standing leader Maharashtra in attracting FDI (foreign direct investment) equity inflows into the country.

A report by Department of Industrial Policy and Promotion (DIPP) mentions that the ‘New Delhi region’, covering the national capital and parts of UP and Haryana (which is broadly contiguous with NCR), received FDI equity inflows of Rs 57,333 crore ($8.3 billion) in the first nine months of 2018-19. FDI equity inflows aggregated about $33.5 billion in the first nine months of fiscal year 2018-19, a 7% decline compared with the same period in the previous fiscal year.

Maharashtra, which had the highest share of FDI in the first nine months of fiscal 2016-17 (49%), has witnessed a consistent drop in its share. Its share in total FDI flows fell to 32% during the corresponding period in fiscal 2017-18 and further to 24% in the same period in FY2018-19.

In contrast, NCR has seen a sustained increase in its share in total FDI equity inflows — from 14% in the first nine months of FY2016-17 to 17% in FY2017-18 and further to 25% in the same period in FY2018-19.

Maharashtra’s FDI inflows fell 30% year-on-year (y-o-y) to Rs 56,346 crore ($8 billion) in the first nine months of FY19 while that of Tamil Nadu contracted 26% y-o-y to Rs 14,166 crore ($2.1 billion).

Maharashtra, Delhi, Tamil Nadu, Karnataka and Gujarat received nearly 75% of the total FDI equity inflows into the country in the first nine months of FY2018-19.

Top five sectors account for 65% of FDI equity inflows

Tamil Nadu’s share in FDI inflows declined to 14% in the first nine months of FY2018-19 from 18% during the corresponding period in FY2017-18, but it was much higher than the 3% share in the same period in FY2016-17, data showed. FDI inflows into Karnataka also slumped 26% y-o-y to Rs 33,014 crore ($4.74 billion). Gujarat, however, saw higher inflows — from $787 million in the first nine months of FY2017-18 to about $1.7 billion in the same period in FY2018-19.

States that have been laggards in the past in attracting FDI, are also catching up fast. Andhra Pradesh, West Bengal, Kerala, Rajasthan, Punjab, Haryana and Himachal Pradesh collectively received nearly 15% of FDI equity inflows in the first nine months of FY2018-19.

They had only a 4% collective share in the comparable period the previous year. “Investments in emerging economies were lower partly due to uncertainty in the global markets,” said Rucha Ranadive, economist, CARE Ratings. “Foreign investments in emerging markets have mainly been adversely impacted by global headwinds such as the slowdown in the global economy, trade war between the US and China, concerns over Brexit, tightening of monetary policies by major global central banks, rupee depreciation and geo-political tensions among others.”

The top-5 sectors — services, computer hardware and software, chemicals, telecommunication and trading— accounted for nearly 65% of total FDI equity inflows. During the first nine months of FY2018-19, chemicals received highest FDI inflows of $6.07 billion, which was 18% of the total FDI equity inflows during this timeframe.

It was much higher than the 3% share of the sector in the comparable period last year and was five times more than the inflows amounting to $1.1 billion in the first nine months of FY2017-18. It was followed by services with nearly 17.7% share and by computer software and hardware (14% share). While inflows in the services sector grew by 28% y-o-y, it declined 8% in computer hardware and software.

Rules, changes in

November 2015: Rules changed for 15 sectors

The Times of India, November 11, 2015

FDI in India: The measures announced for 15 sectors in November 2015; Graphic courtesy: The Times of India, November 11, 2015

Govt tries to move beyond Bihar, goes for FDI reforms

The government announced a raft of changes in the foreign direct investment (FDI) rules for 15 sectors -including retail, defence, construction, banking and electronic media. The PM also was keen to ensure that the rules provide a boost to those manufacturing locally , with sources pointing to the decision to allow “Indian manufacturers“ to retail their goods, including on e-commerce plat forms -a move that will benefit the likes of Fabindia and Hidesign. Other “manufacturers“ too have been allowed to enter the retail arena without the government's approval. In a move that will make it easier for private banks to raise capital, the government has permitted full fungibility of foreign investment in private banks. This means that there will be no sub-limits for foreign portfolio investors (FPIs). While foreign direct investment of up to 74% was permitted until now, portfolio investment -investments by foreign institutional investors -was capped at 49%. Also, banks had to approach the foreign investment promotion board (FIPB) for any increase in foreign investment above 49%. The introduction of fungibility does not, however, mean that strategic investors get a free hand in picking up chunky stakes in banks. RBI regulations require that individual investor holding is capped at below 5%. Also, even promoters of banks are required to dilute their stake below 20% over a period of time. The relaxation of cap on sub-limits is in keeping with the government's proposal to announce composite caps for FDI in various sectors announced in July 2015. However, at the time of the announcement banks were kept out as they were considered `sensitive'.

2016: Liberalised FDI rules

The Times of India, Jun 21 2016

Foreigners can now hold 100% stake in food retail, airlines

The Modi government announced fresh liberalisation of foreign direct investment (FDI) rules by throwing open food retail, airlines and private security firms to higher overseas flows. In addition, rules were eased for those looking to invest in defence, DTH services and single-brand retail as the Modi administration sought to showcase India as the “most open“ FDI destination in the world with only a handful of sectors requiring government clearance.

“The Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India,“ the PMO tweeted.

The government suggested that the pitch will now change to how most sectors don't face FDI restrictions.“We will soon issue a negative list of sectors and all the others will be open to FDI,“ industrial policy and promotion (IPP) secretary Ramesh Abhishek told reporters after the changes were cleared at a high-level meeting chaired by the prime minister.

Although the finance ministry had kicked off discussions and the department of IPP had begun work on easing rules a few weeks ago, the decision came on the first working day after Raghuram Rajan's announcement to return to the US on completion of his term as RBI governor in September.

Government officials said too much should not be read into the announcements sin ce Modi had scheduled the meeting earlier. But the market saw in the decisions the government's determination to counter any slide in business and market confidence and a signal to the world that reforms would continue. In particular, they come amid fe ars of the rupee coming under renewed pressure on account of a possible withdrawal of some of the $20 billionplus foreign currency deposits that are due for redemption later this year. But the urgency could be gauged from the fact that the PM used special powers to announce the decisions and did not wait for a green light from the cabinet, which was scheduled to meet on Wednesday.Modi had used the powers for a similar liberalization initiative in November 2015.

For the government, this is at least the fourth round of major FDI changes since it took office two years ago and the second since last November when the rules for a number of sectors-aviation, construction and retail, among others--were eased. Earlier, the Modi government had raised FDI caps on insurance and defence while allowing overseas flows into railways, which had remained shut two decades after the 1991 reforms. The steps fuelled a 54% jump in FDI flows in the last financial year, to a record $55.5 billion.

This time, the focus has been on removing the stiff conditions that often came with opening up a sector and which tended to deter investors. The government has therefore eased rules for defence manufacturing companies where foreign ownership is in excess of 49%. Earlier, FDI was allowed only if foreign funds were accompanied with “state of the art“ technology. Now the rules say “modern technology“ will need to come, which is seen to be more flexible.“If the defence forces need some goods and it is produced using modern technology as opposed to state of the art, a local manufacturing facility can come up,“ said a senior government official.

Consultants acknowledged that rules had been simplified. “Defence is extremely technology-driven and OEMs (original equipment manufacturers) invest huge sums of money generating technology and intellectual property. The fact that there was no control permitted earlier was a major issue that was cited for not investing in India. That obstacle has now been removed and coupled with major simplification in the DPP (defence procurement procedure), OEMs should respond positively and proactively to these path-breaking reforms,“ said Dhiraj Mathur, a partner at global consulting firm PricewaterhouseCoopers.

Even in case of food retailing, the PM chose to ignore protests from the food processing ministry on mandating sourcing norms for retailers in a segment where 100% FDI has been permitted without riders, including in e-commerce.

The government also eased norms for setting up branch office, liaison office or project office. It also simplified rules for FDI in animal husbandry.

2016: Abolition of Foreign Investment Promotion Board (FIPB)

Pradeesh Chandran, Centre to abolish FIPB, Feb 1, 2017: The Hindu Business Line

Government has shown its clear intent towards fast-tracking inflow of Foreign Direct Investments

The Budget 2017-18 has given a clear indication of the government’s intent to further liberalise policies related to foreign direct investment. It also seeks to dismantle a two-decades-old body that was formed as a beacon of the economic liberalisation of 1993: the Foreign Investment Promotion Board (FIPB). The 1993 round of reforms under the P.V. Narasimha Rao regime, for the first time, threw the doors open to foreign investors.

One of the major announcements in Finance Minister Arun Jaitley’s Budget speech was the abolition of the FIPB.

The board has offered a single window clearance for applications of prospective foreign investors in sectors falling in the approval route. The board has handled investment proposals worth up to ₹5,000 crore.

Creation of FIPB

The FIPB was formed under the Prime Minister’s Office in the mid-1990s as part of the first round of Indian economic reforms. It was reconstituted in 1996 and transferred to the Department of Industrial Policy and Promotion. It was transferred to the Department of Economic Affairs under the Ministry of Finance in 2003, according to its website.

According to government rules, foreign investments in sectors under the automatic route do not require prior approval from the FIPB and are subject to sectoral rules.

“More than 90% of the total FDI inflows are now through the automatic route. The Foreign Investment Promotion Board has successfully implemented e-filing and online processing of FDI applications.”

“We have now reached a stage where FIPB can be phased out. We have therefore decided to abolish the FIPB in 2017-18,” Mr. Jaitley said.

“Government has shown its clear intent towards fast-tracking inflow of FDI, and the scrapping of FIPB is a notable step that would go a long way in supporting the objective of ease of doing business,” stated Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals.

Meanwhile, Mr. Jaitley also stated the government’s plan to pursue more radical liberalisation in Foreign Direct Investment norms.

Government scraps 25-year-old foreign investment advisory body: 10 key takeaways

Ramarko Sengupta, May 25, 2017: The Times of India

HIGHLIGHTS

The elimination of the decades-old panel is aimed at attracting more foreign direct investment.

1. The step follows Finance Minister Arun Jaitley's budget pledge in February to abolish the institution, which was set up soon after India embarked on its first market reforms in 1991, in a departure from decades of socialist planning

2. The FIPB currently vets FDI proposals requiring government's approval up to Rs 5,000 crore. Announcing the Cabinet's decision, Finance Minister Arun Jaitley said there are just 11 sectors left in which government's approval is needed for FDI.

3. The government has opened up most of the sectors to enable foreign companies to set up shop in the country, thus nearly eliminating the need for a dedicated panel.

4. Sectors that are under the approval route for FDI includes defence and retail trading. As per the proposed mechanism, respective ministries would take care of the FDI proposals.

5. In June 2016, the government had relaxed FDI norms in single-brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products, which meant these sectors did not need FIPB's approval anymore.

6. FIPB was set up in the early 1990s; it was then under the Prime Minister's Office. In 1996, it was transferred to the commerce ministry's department of industrial policy and promotion, and to finance ministry's department of economic affairs in 2003. Economic Affairs Secretary Shaktikanta Das heads it currently.

7. Post the FIPB abolition, the government might ease FDI norms further in a few sectors. There could be an increase in the FDI limit in print news media to 49 per cent from the current 26 per cent and single-brand retail could be on the full automatic route.

8. Sectors where industry players have asked for further easing of rules include aviation, defence and pharmaceuticals.

9. The government had allowed full FDI in defence after approval; investors can pump in up to 49 per cent through automatic route. For brownfield projects in the pharmaceutical sector, automatic approval had been extended to 74 per cent.

10. The abolition of the FIPB is expected to facilitate easier capital inflows into India from foreign companies.

Retail, real-estate (100%); MHA security replaced

100% FDI Allowed In Single-Brand Retail Under Automatic Route, January 11, 2018: The Times of India

January 2018- What the rules for FDI mean
From: 100% FDI Allowed In Single-Brand Retail Under Automatic Route, January 11, 2018: The Times of India

In reforms push, foreign airlines allowed 49% in AI

The Union Cabinet unveiled a fresh round of liberalisation of the foreign direct investment (FDI) policy, allowing foreign airlines to invest up to 49% in Air India, and opening up 100% FDI in singlebrand retail under the automatic route. Similarly, 100% FDI has been allowed via the automatic route in real estate broking services.

Under the existing rules, foreign airlines can invest, with government approval, in Indian companies operating scheduled and non-scheduled air transport services, up to 49% of their paid-up capital. However, this provision was not applicable to Air India, implying that foreign airlines could not invest in the national carrier.

Foreign Cos Cannot Mandate Auditor Of Their Choice

Sidhartha, Big 4 audit firms face checks under liberalised FDI policy, January 12, 2018: The Times of India

Foreign Cos Cannot Mandate Auditor Of Their Choice

The government has quietly slipped in a swadeshi move while liberalising the foreign direct investment (FDI) rules by mandating that overseas auditors will have to undertake joint audit if an international investor insists on audit by a global firm, or its Indian affiliate.

This marks a major shift in India’s FDI regime, which was earlier silent on the issue and resulted in a situation where the shareholders’ agreement between a foreign investor and its Indian partner contained a clause specifying audit by Big Four firms such as KPMG, Ernst & Young, Deloitte or PricewaterhouseCoopers or Indian firms that are part of their network. The clause has been inserted to prevent this kind of an arrangement and the belief is that one global firm will not agree to a joint audit with an international rival and this will open the doors for standalone Indian firms which have been complaining of being left out. The foreign firms control a majority of the audit work in listed entities as well as large Indian companies, causing a lot of heartburn.

In fact, a group of Indian chartered accountants had lobbied hard with the government to insist on joint audit for all companies and had pitched for an amendment to the Companies Act. An expert committee headed by former finance secretary Ashok Chawla, however, rejected the proposal as it was seen to be adding to costs but recommended ways to strengthen Indian firms and work towards the development of some large Indian entities.

“It is a very good move from a corporate governance point of view. Instead of promoting Indian firms, the existing system prevented them from becoming global brands. This government move will help Indian firms,” said S Santhanakrishnan, an expert on corporate governance and law and an independent director on the boards of several large companies and banks.

“This move will help create large Indian firms and once international players get a taste of Indian firms, they will find it more worthwhile to work with them,” added Vinod Jain, president and founder of the All India Chartered Accountants Society. Sources, however, said that foreign investors can use another route to overcome the government directive. Instead of inserting a clause in the shareholders’ agreement, they may now get a resolution passed at the annual general meeting, something that is provided under the Companies Act. Jain, however, said that this may be tough to do.

FDI and the Financial Secrecy Index

2016

The Times of India, Nov 03 2015

Is there a correlation between FD investment in India and the investing country’s rank on the financial secrecy index (FSI)?
Countries such as Switzerland, the US, Singapore and Germany that figure in the top 10 list of FSI-2015 (and are perceived as actively promoting secrecy in global finance) are also among the top 10 FDI investors to India; Graphic courtesy: The Times of India, November 3, 2015

Lubna Kably

Switzerland still top tax haven, US jumps to No. 3

Switzerland has retained its top spot in the financial secrecy index (FSI) 2015, unveiled by the Tax Justice Network (TJN) on Monday . Switzerland is followed by Hong Kong, the US, Singapore and the Cayman Islands. The biggest surprise is the US, which has climbed to third place from sixth place in FSI-2013.

Countries such as Switzerland, the US, Singapore and Germany that figure in the top 10 list of FSI-2015 (and are perceived as actively promoting secrecy in global finance) are also among the top 10 FDI investors to India. TJN's biennial FSI ranking is based on a combination of a country's secrecy score and a scale-weightage based on the country's share in the global market for its offshore financial services. Thus, for instance, even though Mauritius (India's top FDI investor) has a secrecy score of 72, it is ranked lower at 23 as it accounts for less than 1% of the global market for offshore financial services compared to Singapore. India's second largest FDI investor, Singapore, has a lower secrecy score of 69 points but is ranked at fourth position. Other top investors in India like the UK, Japan and the Netherlands have an FSI rank of 15, 12 and 41, respectively. Among the notable FDI investors in In dia, countries such as Mauritius, Switzerland and the UAE have a secrecy score of more than 70.

As regards the US, TJN's communication states, “US is more of a cause for concern than any other individual country , because of both the size of its offshore sector and also its rather recalcitrant attitude to international co-operation and reform. Though it has been a pioneer in defending itself from foreign secrecy jurisdictions, aggressively taking on the Swiss banking establishment and setting up its technically quite strong Foreign Account Tax Compliance Act (FATCA), it provides little information in return to other countries.“ According to tax experts, the FACTA agreement entered into with India provides for reciprocal exchange of information, but it's too early to comment on the information that will be shared by the US. Singapore and Germany , which also figure in the top 10 list of FSI-2015, are also among the top 10 investor countries for India. Germany's laxity in tackling illicit money and also in spearheading EU's resistance to public access of country-by-country reporting by multinational corporates has been pointed at.

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-This is a collection of articles archived for the excellence of their content.<br/>You can help by converting these articles into an encyclopaedia-style entry,<br />deleting portions of the kind normally not used in encyclopaedia entries.<br/>Please also fill in missing details; put categories, headings and sub-headings;<br/>and combine this with other articles on exactly the same subject.<br/>
+This is a collection of articles archived for the excellence of their content.<br/>
+</div>
-Readers will be able to edit existing articles and post new articles directly <br/>  on their online archival encyclopædia only after its formal launch.
-See [[examples]] and a tutorial.</div>
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-[[Category: India |M]]
+[[Category:India |F ]]
-[[Category: Places |M]]
+[[Category:Economy-Industry-Resources |F ]]
-[[Category: Fauna |M]]
-[[Category: Bangladesh|M]]
+=FDI in India: A timeline=
+==1991-2016==
+[http://www.thehindu.com/specials/the-big-ticket-fdi-reform/article8755687.ece ''The Hindu''], June 21, 2016
+''' Twenty-five years of changes in FDI policy: highlights '''
+''' ''1991'' '''
+'''July''': New industrial policy of Narasimha Rao government as part of the Union Budget presented by Manmohan Singh, which led to a substantive opening up of the Indian economy.
+'''August''': FDI up to 51 per cent opened up in 47 high-priority sectors, including software (with 34 sectors under automatic route), with a condition that capital goods imports be financed by foreign equity. Export trading firms, hotels and tourism businesses also allowed 51 per cent FDI.
+Foreign Investment Promotion Board (FIPB) set up in the PMO to vet FDI proposals, with a Finance Minister-headed panel deciding on investments taking a call on FDI over Rs 300 crore.
+''' ''1992'' '''
+'''April''': FDI in software also put on automatic route.
+'''May''': Use of foreign brand names allowed.
+'''June''': Dividend balancing norms for FDI-backed firms, linking dividend payments to export income, scrapped for all but consumer goods firms.
+''' ''1994'' '''
+'''October''': FDI in Pharma up to 51 per cent put on automatic approval route, except for recombinant DNA technologies.
+''' ''1996'' '''
+FIPB transferred to Department of Industrial Policy and Promotion (DIPP); approvals up to Rs. 600 crore by Industry Minister, Cabinet Committee for nods over Rs. 600 crore.
+'''November''': Condition linking import of capital goods to foreign equity investments scrapped.
+''' ''1998'' '''
+'''October''': 49 per cent FDI allowed in mobile telephony by satellite.
+''' ''1999'' '''
+'''January''': FDI in construction of highways, toll roads and ports raised from 74 per cent to 100 per cent.
+'''March''': Timeline for considering FDI proposals slashed from six weeks to 30 days.
+''' ''2000'' '''
+'''March''': Eases norms for 100 per cent FDI in NBFCs.
+'''October''': 26 per cent FDI in insurance sector.
+''' ''2001'' '''
+'''May''': 100 per cent FDI in drug manufacturing and pharma, airports, hotel, tourisms, 26 per cent FDI in defence, 74 per cent in select activities of telecom sector, 49 per cent FDI in banking sector.
+''' ''2004'' '''
+'''January''': 100 per cent FDI in petroleum product marketing, oil exploration, petroleum production and natural gas pipelines.
+'''March''': 74 per cent FDI in private banks.
+''' ''2005'' '''
+'''March''': 100 per cent FDI in townships.
+'''November''': 74 per cent FDIin telecom, 20 per cent FDI in radio broadcasting.
+''' ''2006'' '''
+'''February''': 51 per cent FDI in single brand retail.
+'''March''': 74 per cent FDI in telecom.
+''' ''2008'' '''
+'''March''': 100 per cent FDIin airports, 74 per cent FDI in non-scheduled air transport services.
+''' ''2009'' '''
+'''January''': 100 per cent FDI in fax publication of foreign newspapers, 26 per cent FDI in publication of Indian versions of foreign publications.
+''' ''2011'' '''
+'''November''': 100 per cent FDI in brownfield pharmaceutical projects (earlier only in greenfield).
+''' ''2012'' '''
+'''January''': 100 per cent FDI in single brand retail.
+'''September''': 52 per cent FDI in multi-brand retail. 49 per cent FDI in aviation companies, power exchanges. 74 per cent FDI in teleports, mobile TV.
+''' ''2014'' '''
+'''August''': 49 per cent FDI in defence sector, 100 per cent FDI in some aspects of rail infrastructure.
+''' ''2015'' '''
+'''March, April''': 49 per cent FDI in insurance, pension sectors.
+''' ''2016'' '''
+'''June''': 100 per cent FDI in trading including through e-commerce, amendments to FDI in defence sector policy, 100 per cent FDI in teleports, DTH, mobile TV, 100 per cent FDI in brownfield aviation projects, 74 per cent FDI in private security agencies, amendments to FDI in animal husbandry policy, relaxing norms in single brand retail.
+==2004-16: FDI inflows into India==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Modis-Make-in-India-a-success-Moodys-08042016026031 ''The Times of India''], April 8, 2016
+[[File: FDI inflows 2000-2015.jpg| FDI inflows 2000-2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Modis-Make-in-India-a-success-Moodys-08042016026031 ''The Times of India''], April 8, 2016|frame|500px]]
+'''FDI Financing CAD First Time Since 2004'''
+Ratings agency Moody's has said that net foreign direct investment (FDI) inflows have hit an all-time high in early 2016, highlighting the success of Narendra Modi's `Make in India' initiative. The ratings agency said that the FDI in flows have more than financed the current account deficit (CAD) for the first time since 2004. A country is known to be facing a CAD when the value of its imports is more than the value of its exports.
+“The rise in FDI points to stronger investor interest in India on the back of ro bust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the `Make in India' initiative, are bearing fruit,“ said Moody's in a report released on Thursday .
+Net FDI inflows into India hit an all-time high in January 2016 at $3 billion on a 12-month moving average basis. India's current account deficit is now more than covered by its FDI inflows. The basic balance (the sum of the current account balance and net FDI) returned to surplus in 2015 after being in deficit from 2003-2014.
+This is good news for the do mestic currency whose value has been determined by capital flows due to the country's per manent trade deficit. The only dark cloud has been the drop in remittances. Money sent by overseas Indians dropped 30% year-on-year in the SeptemberDecember 2015 quarter due to turmoil in the Middle East economy . But Moody's said that In dia's external financing needs have diminished sharply over the last three years due to a crash in commodity prices.
+On FDI, Moody's said that the development of industrial corridors, investment & manufacturing zones, and `smart cities' will further bolster investment inflows. “In particular, flows into the manufacturing sector are likely to accelerate as the government seeks to boost the sector's share of gross domestic product (GDP) to 25% by 2022.Government investment in infrastructure will help address some of India's deficiencies in this area and foster FDI,“ the report added.
+==2011-16==
+[[File: FDI inflows in India, year-wise, 2011-16.jpg|FDI inflows in India, year-wise, 2011-16; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=10_06_2016_025_026_011&type=P&artUrl=Govt-mulls-up-to-49-pharma-FDI-without-10062016025026&eid=31808 The Times of India], June 11, 2016|frame|500px]]
+See graphic, 'FDI inflows in India, year-wise, 2011-16'
+==2011-18==
+[[File: Foreign direct investment in India, 2011-18; The main countries from which Foreign direct investment comes into India; and ; The five main sectors that attract Foreign direct investment into India.jpg|i) Foreign direct investment in India, 2011-18; <br/> ii) The main countries from which Foreign direct investment comes into India; and <br/> iii) The five main sectors that attract Foreign direct investment into India <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F09&entity=Ar02119&sk=1F29C4AB&mode=text  June 9, 2018: ''The Times of India'']|frame|500px]]
+'''See graphic''':
+''i) Foreign direct investment in India, 2011-18; <br/> ii) The main countries from which Foreign direct investment comes into India; and <br/> iii) The five main sectors that attract Foreign direct investment into India.''
+==2014-19==
+[[File: FDI inflows into India, year-wise, 2014-19.jpg|FDI inflows into India, year-wise, 2014-19 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F08%2F29&entity=Ar00304&sk=972D9675&mode=text  August 29, 2019: ''The Times of India'']|frame|500px]]
+'''See graphic''':
+'' FDI inflows into India, year-wise, 2014-19 ''
+[[Category:Economy-Industry-Resources|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:India|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:Pages with broken file links|FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+==2017: inflows decreased 9%, outflows doubled==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F08&entity=Ar02206&sk=F97F2195&mode=text  FDI into India slipped 9% to $40bn last year: UN report, June 8, 2018: ''The Times of India'']
+Foreign Direct Investment (FDI) to India decreased 9% to $40 billion last year from $44 billion in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN.
+According to the World Investment Report 2018 by the UN Conference on Trade and Development (UNCTAD) global foreign direct investment flows fell by 23% in 2017, to $1.4 trillion from $1.9 trillion in 2016. “Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries,” UNCTAD secretarygeneral Mukhisa Kituyi said.
+FDI to India decreased from $44 billion in 2016 to $40 billion in 2017. But outflows from India, the main source of FDI in South Asia, more than doubled to $11 billion, the report said.
+The report cited India’s state-owned oil and gas company ONGC’s active investment in foreign assets in recent years. After acquiring a 26% stake in Vankorneft, an affiliate of Russia’s national oil company Rosneft PJSC, in 2016, ONGC bought a 15% stake in an offshore field in Namibia from Tullow Oil in 2017. By the end of 2017, ONGC had 39 projects in 18 countries, producing 285,000 barrels of oil and oilequivalent gas per day, the report said.
+=== 3% growth in FDI slowest in four years===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F09&entity=Ar00112&sk=A5EE3477&mode=text  June 8, 2018: ''The Times of India'']
+Foreign direct inflows into India rose 3% to $62 billion during 2017-18, the slowest pace of expansion since the Narendra Modi government came to office four years ago. FDI inflows during the previous financial year were estimated at a shade over $60 billion.
+The slowdown in growth in FDI flows comes even as domestic private investment has remained muted, which commerce and industry minister Suresh Prabhu said was on account of surplus production capacity now getting used up.
+He said that during the four years of the Modi government, foreign inflows jumped to $223 billion from $152 billion in the previous four-year period.
+==2016==
+[[File: Sectors where 100 per cent foreign investment was already permitted , India Today ,  June 23,2016 .jpg| Sectors where 100 per cent foreign investment was already permitted , India Today ,  June 23,2016 |frame|500px]]
+=== India: World's top greenfield FDI destination ===
+[http://timesofindia.indiatimes.com/business/india-business/india-retains-worlds-highest-fdi-recipient-crown-report/articleshow/58844573.cms  India retains world's highest FDI recipient crown: Report, May 25, 2017: The Times of India]
+''' HIGHLIGHTS '''
+India attracted USD 62.3 billion in 2016, says the FDI Report 2017
+India has remained ahead of China and the US as far as FDI inflows were concerned in the last year, it states.
+FDI by capital investment saw an increase of 2 per cent to USD 62.3 billion in 809 projects during 2016 in India
+India retained its numero uno position of being the world's top most greenfield FDI investment destination for the second consecutive year, attracting US $62.3 billion in 2016, says a report.
+India has remained ahead of China and the US as far as FDI inflows were concerned in the last year, said the fDi Report 2017 compiled by fDi Intelligence, a division of The Financial Times Ltd.
+FDI by capital investment saw an increase of 2 per cent to US $62.3 billion in 809 projects during 2016 in India.
+"India managed to keep the crown as the world's number one location for greenfield capital investment for the second year running - ahead of China and the US," the report said.
+The report said, global investment landscape has changed considerably in 2016 as FDI gravitated to locations experiencing the strongest economic growth, while locations in recession or facing high levels of uncertainty saw major declines.
+In 2016, greenfield FDI continued to rise worldwide, with capital investment increasing by more than 6 per cent to US $776.2 billion, its highest since 2011, alongside an increase in job creation by 5 per cent to 2.02 million. The number of FDI projects, however, declined 3 per cent to 12,644.
+China has overtaken the US to become the second biggest country for FDI by capital investment, recording US $59 billion of announced FDI, compared with US $48 billion-worth in the US.
+Globally, the real estate sector has claimed the top spot for capital investment, with US $157.5 billion of announced FDI recorded in 2016, following an increase of 58 per cent.
+In value terms, coal and natural gas witnessed an inflow of US $121 billion, followed by alternate and renewable energy at US $77 billion.
+=== Defence ===
+[http://indiatoday.intoday.in/story/narendra-modi-fdi-raghuram-rajan/1/698804.html Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 23 6 2016]
+[[File: FDI in defence , India Today , July 4,2016 .jpg| FDI in defence , India Today , July 4,2016 [http://indiatoday.intoday.in/story/narendra-modi-fdi-raghuram-rajan/1/698804.html Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 23 6 2016]|frame|500px]]
+=== Pharma ===
+[http://indiatoday.intoday.in/story/narendra-modi-fdi-raghuram-rajan/1/698804.html Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang , 23/6/2016]
+[[File: FDI in Pharma , India Today , June 23, 2016 .jpg| FDI in Pharma , India Today , June 23, 2016 |frame|500px]]
+=== India at Global level ===
+''' See graphic '''
+[http://indiatoday.intoday.in/story/narendra-modi-fdi-raghuram-rajan/1/698804.html Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 4/7/2016]
+[[File: India Today , July 4,2016 .jpg| India Today , July 4,2016 |frame|500px]]
+=== Retail ===
+''' See graphic '''
+[http://indiatoday.intoday.in/story/narendra-modi-fdi-raghuram-rajan/1/698804.html Shweta Punj Sandeep Unnithan MG Arun , The FDI big bang “India Today” 4/7/2016]
+[[File: India Today , July 4 ,2016 .jpg| India Today , July 4 ,2016 |frame|500px]]
+==2017-Mar 2018, FDI inflow, state-wise==
+[https://www.thehindu.com/news/national/karnataka-sees-300-jump-in-fdi-inflows-tn-rebounds/article24497788.ece  Sangeetha Kandavel and Sanjay Vijayakumar, Karnataka sees 300% jump in FDI inflows, T.N. rebounds, July 23, 2018:  ''The Hindu'']
+[[File: The graph shows change in FDI in 2017-18 compared to 2016-17 across various RBI offices.jpg|The graph shows change in FDI in 2017-18 compared to 2016-17 across various RBI offices <br/> From: [https://www.thehindu.com/news/national/karnataka-sees-300-jump-in-fdi-inflows-tn-rebounds/article24497788.ece  Sangeetha Kandavel and Sanjay Vijayakumar, Karnataka sees 300% jump in FDI inflows, T.N. rebounds, July 23, 2018:  ''The Hindu'']|frame|500px]]
+''Services sector top recipient despite 23% drop''
+Karnataka registered the biggest increase in Foreign Direct Investment (FDI) last year, as inflows from overseas jumped 300% in the 12 months ended March 2018. Tamil Nadu too saw a rebound reversing a slowdown in the preceding period, while Gujarat, Maharashtra and Andhra Pradesh all saw a drop in FDI inflows, data from the Reserve Bank of India (RBI) presented in Parliament show.
+While Karnataka received $8.58 billion in 2017/18, a sharp increase from the $2.13 billion in the previous fiscal, Tamil Nadu netted $3.47 billion, a 56% increase from the $2.22 billion in the prior period, as the State appeared to buck concerns about the investment climate. Investment had halved in 2016/17 from the previous 12 months ($4.53 billion) in an election year that also saw some political uncertainty in the wake of then Chief Minister J. Jayalalithaa’s hospitalisation and demise.
+The data from the Chennai Regional Office of the RBI, covers Tamil Nadu and Puducherry.
+Other major states Maharashtra, Gujarat and Andhra Pradesh saw a dip in FDI inflows, according to Minister of State for Commerce and Industry C.R. Chaudhary, in a written reply to the Lok Sabha on Monday.
+Data from the Mumbai office of RBI, which covers Maharashtra, Dadra and Nagar Haveli, Daman and Diu, show inflows dropped to $13.4 billion in 2017/18 from $19.7 billion. FDI inflows into Gujarat fell almost 38% to $2.09 billion in 2017-18, from $3.37 billion.
+Andhra Pradesh saw FDI inflows drop 43% to $1.25 billion in 2017/18.
+Biswajit Dhar, Professor at Centre for Economic Studies and Planning in the School of Social Sciences at Jawaharlal Nehru University, pointed out that there was no way to assess whether the inflows were helping a State in its development efforts.
+“When you look at the breakdown of FDI, it has a lot of components to it – firstly, you have long term inflows and then you have short term inflows like private equity,” he pointed out.
+Overall, sector-wise investment data show that computer software and hardware gained from a 68% jump in FDI last year to $6.15 billion.
+Interestingly, the services sector which comprises finance, banking, insurance and outsourcing among others, remained the top recipient of FDI despite seeing a 23% decline in inflows at $6.71 billion.
+==2019-20: 18% growth==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F05%2F29&entity=Ar02015&sk=55EE777B&mode=text  FDI inflows surge 18% in 2019-20 to record $74bn, May 29, 2020: ''The Times of India'']
+[[File: FDI inflow into India, 2015-20..jpg| FDI inflow into India, 2015-20. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F05%2F29&entity=Ar02015&sk=55EE777B&mode=text  FDI inflows surge 18% in 2019-20 to record $74bn, May 29, 2020: ''The Times of India'']|frame|500px]]
+India’s FDI inflows, including reinvested earnings, rose 18% to a record $73.5 billion during 2019-20, buoyed by a spurt in inflows into computer hardware & software, telecom, and hotel & tourism, while services, the traditional mainstay, witnessed a decline.
+Excluding reinvested earnings, inflows were 14% higher at just a shade under $50 billion, which is also an all-time high. In fact, the large flows acted as a counterweight to low FII inflows during the year, which were estimated at $247 million (on a net basis) during the last financial year.
+The data naturally led to some celebration in government, given the overall gloomy economic situation and weak domestic investment. “In another strong vote of confidence in Make in India, total FDI into India grew 18% in 2019-20 to reach $73 billion. Total FDI has doubled from 13-14 when it was only $36 billion. This long-term investment will spur job creation,” commerce and industry minister Piyush Goyal tweeted.
+The year saw several large deals, involving overseas, with large inflows expected during the current year as well, with Reliance Jio alone announcing several transactions so far. Besides, some of the earlier announcements such as Saudi Aramco’s stake acquisition in Reliance Industries and Brookfield’s proposed investment in the tower arm are pending.
+While Maharashtra remained the top destination for overseas investors, Karnataka came second, although data for the October-March period was released by the department for promotion of industry and internal trade.
+In terms of the countries, Singapore remained the top source for the second straight year, although inflows from the island nation dropped almost 10% to $14.7 billion. Mauritius was a distant second with investments of $8.2 billion routed via India’s close ally, with a sharp spike seen from the Netherlands, with inflows rising 1.7 times to $6.5 billion.
+==2020==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F01%2F26&entity=Ar03316&sk=5932555D&mode=text  January 26, 2021: ''The Times of India'']
+[[File: India and the world, % change in FDI inflows in 2020.jpg|India and the world, % change in FDI inflows in 2020  <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F01%2F26&entity=Ar03316&sk=5932555D&mode=text  January 26, 2021: ''The Times of India'']|frame|500px]]
+[[File: FDI equity inflows distribution India FY2020 by sector.jpg|FDI equity inflows distribution India FY2020 by sector <br/> From: [https://timesofindia.indiatimes.com/business/india-business/how-india-can-become-a-major-tech-hub/articleshow/81764046.cms  March 30, 2021: ''The Times of India'']|frame|500px]]
+'''See graphics''':
+''India and the world, % change in FDI inflows in 2020''
+'' FDI equity inflows distribution India FY2020 by sector ''
+FDI inflows into India jump by 13% to $57bn in 2020: UN
+At $163Bn, China Pips US, Becomes Largest Global Recipient
+New Delhi:
+India witnessed a 13% rise in foreign direct investment (FDI) to $57 billion in 2020 compared to the previous year. The domestic figure was boosted by investments in the digital economy, while China overtook the US as the largest recipient of FDI globally, according to an UNCTAD report.
+India and China were the only two countries which saw FDI rising in 2020, while the rest of the world, including developed economies such as the UK and the US, saw sharp declines. This was revealed by the UNCTAD’s investment trends monitor’s findings.
+India’s FDI inflows were propped up by acquisitions in the digital economy. The report said cross-border M&A sales grew 83% to $27 billion, a notable deal being the acquisition of nearly 10% of Jio Platforms by Jaadhu — owned by Facebook — for $5.7 billion. It also said that infrastructure and energy propped up M&A deal values in the country.
+The Indian economy is staging a sharp recovery after plunging to record levels due to the impact of the strictest lockdown imposed to prevent the spread of the deadly Covid.
+The report said China became the largest recipient of FDI, attracting an estimated $163 billion in inflows, followed by the US with $134 billion. It said that in relative terms, flows declined most strongly in the UK, Italy, Russia, Germany, Brazil and the US. FDI inflows to China increased by 4% compared to the previous year.
+The pandemic triggered havoc across global economies and the report said global FDI collapsed in 2020, falling by 42% to an estimated $859 billion from $1.5 trillion in 2019. It said that FDI finished 2020 more than 30% below the trough after the global financial crisis. Flows to developed countries fell drastically by 69% to values last seen 25 years ago.
+FDI in Asean — an engine of FDI growth throughout the last decade — was down by 31%.
+UNCTAD said global FDI flows will remain weak in 2021. “The uncharacteristic immediacy of the FDI reaction to the crisis caused by the pandemic was due to physical lockdowns and other mitigation measures making the implementation of ongoing projects more difficult but the effects of the recession will linger and an FDI recovery is not expected to start before 2022. Investor uncertainty related to further waves of the pandemic and to developments in the global policy environment for investment will also continue to affect FDI,” the report cautioned.
+[[Category:Economy-Industry-Resources|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:India|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:Economy-Industry-Resources|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:India|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:Pages with broken file links|FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+=Foreign companies registered in India=
+[[File: foreign companies.jpg|2014:Foreign companies in India,state-wise|frame|500px]]
+[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Gokalpur-has-never-repeated-MLAs-09022015004006 ''The Times of India'']
+Feb 09 2015
+''' DESTINATION INDIA '''
+As of December, 2014, there were over 4,000 foreign companies registered in the country. Of these, a little over 79% were active.Interestingly. the national capital had the highest number of such companies. It was followed by Maharashtra, Karnataka, Haryana and Tamil Nadu, usually perceived as some of the most industrialized states. The relatively large number of companies registered in Haryana seems to be linked to MNCs located in Gurgaon, one of the NCR's leading business hubs
+=Amount invested=
+==FDI by G20 nations: 2000-15==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=UK-leads-G20-nations-flow-to-India-in-02092015023030 ''The Times of India''] ,Sep 02 2015
+[[File: FDI in India by G20 nations (April 2000-March 2015).jpg|FDI in India by G20 nations (April 2000-March 2015); Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=UK-leads-G20-nations-flow-to-India-in-02092015023030 ''The Times of India''] ,Sep 02 2015|frame|500px]]
+Kounteya Sinha
+'''UK leads G20 nations flow to India in FDIHOT'''
+The latest data to confirm Britain's increasing interest in investing in India will make PM Narendra Modi happy a couple of months before he embarks on his maiden visit to the United Kingdom.
+The UK has become the largest investor in India among all G20 countries with a combined revenue of more than $54 billion in India.
+Between the year 2000 and 2015, UK's FDI into India amounts to $22 billion -9% of all FDI in the country .
+In total, G20 nations invested $ 73.9 billion in India between 2000-2015 with the UK being the single largest G20 investor into India followed by Japan ($ 18.3 bn), the US ($13.7bn), Germany ($ 7.6 bn) and France ($ 4.5 billion).
+As India's largest employer, UK firms employ around 691,000 people across the country -5.5% of total organized private sector jobs in the country . Between 2000 and 2015, UK FDI generated around 138,000 direct jobs, 7% of the total 1.96 million jobs generated by FDI in India.
+India's massive talent pool was the main reason for 63% of the British companies to believe in India's potential while India's recent growth story made 86% of them turn to interest towards the Asian giant. English being an official language has helped, too, with 53% of the companies relying on it while 40% said it was the country's stable government.
+Confederation for British Industry's first Sterling Assets India report sponsored by PwC UK and brought out in association with the UK India Business Council says that Maharashtra and Delhi have attracted the bulk of Britain's FDI into India -26% and 20% respectively .
+The chemicals sector attracts the lion's share of British investment in India, at $5.78 billion (26% of UK FDI), followed by the pharmaceutical sector at $3.76 billion (17% of UK FDI) and the food processing sector at $3.05 billion (14% of UK FDI).
+Katja Hall, the confederation's deputy DG, said, “The economic relationship between India and the UK is in fine fettle. The UK has played a significant role in India's growth journey , investing more and creating more jobs than any other G20 nation.PM Modi's steps to improve the ease of doing business in India are a great boost and we look forward to the EU-India FTA talks resuming.“
+== 60% increase, Oct 2014-Sept 2016==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=FDI-jumps-60-in-Oct-2014-Sept-2016-22112016022034  FDI jumps 60% in Oct 2014-Sept 2016, Nov 22 2016 : The Times of India]
+FDI went up 60% to $77.9 billion after the launch of `Make in India' initiative in September 2014, the government said on Monday.
+Commerce and industry minister Nirmala Sitharaman said that after the launch of this initiative, there has been an “unprecedented“ increase in FDI into the country.
+“During the period October 2014 to September 2016, total FDI equity inflows of $77.9 billion was recorded as against $48.5 billion received during the preceding 24 months with an increase of 60%,“ she said in a written reply to the Lok Sabha.
+Make in India was launched with an aim to promote India as an important investment destination and a global hub for manufacturing. Replying to a separate question, she said a total of 19,666 comp laints were received by the National Consumer Helpline during April-October this year. In 2015-16, this number was 23,955.
+“24 e-commerce companies were incorporated registered in India during the last two years (2014-15 and 2015-16),“ she added.
+==Private Equity (PE) investments: 2014, 2015==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=PE-inflows-may-hit-record-20bn-this-year-22102015023032 ''The Times of India''], Oct 22 2015
+[[File: PE investments, Jan-Sept 2015.jpg|PE investments: Jan-Sept 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=PE-inflows-may-hit-record-20bn-this-year-22102015023032 ''The Times of India''], Oct 22 2015|frame|500px]]
+Reeba Zachariah
+'''PE inflows may hit record $20bn in 2015'''
+If the last nine months of private equity (PE) activity are any indication, PE investments are poised for a strong finish in 2015. Bain Consulting, the leader in consulting to PE firms in India and globally , predicts that PE transactions will touch a record $20 billion this year, higher than the previous record of $17.1 billion in 2007.Heightened financing in consumer technology space and bigticket investments in real estate and financial services will propel PE activity to hit a new high this calendar.
+PE investments for the first nine months of 2015 have al ready hit $16.7 billion, outpacing 2014's total PE deal value of $15.2 billion. “The growth trend indicates that PE investment activity this year will surpass 2007, which was the best period so far,“ said Madhur Singhal, consulting principal, private equity practice, Bain Consulting.
+The deal activity has been chiefly driven by the country's booming consumer technology sector, which attracted $5.4 billion of investments, followed by real estate and financial services with $3.6 billion and $2 billion, respectively , during the first nine months of 2015.
+Bain Consulting's PE deals database doesn't include transactions where deal value is not disclosed. The three sectors accounted for 65% of the total deal value in the January-September period of 2015 and are expected to keep up the momentum in the October to December period too. “The consumer tech space needs more capital to scale up and will continue to attract more private equity ,“ Singhal said. Early-stage and growth investments dominated 85% of the deals in the first nine months of 2015.
+PE funds such as Tiger Global, Blackstone, Temasek, Advent, SoftBank, Actis and GIC have invested about $125 billion in 5,400 deals between 2005 and September-end of 2015. However, exits from portfolio companies continue to remain challenging.Many funds have been forced to hold on to their investments for a longer number of years than originally envisaged.
+Exits reached $4.5 billion in the first nine months of this year, driven by public market and secondary sales. Real estate, financial services and telecom witnessed the highest number of exits. The top 10 big-ticket exits, including TPG Capital selling its stake in Shriram City Union Finance for $386 million and New Silk Route offloading its interest in PNB Housing Finance for $257 million, constituted 40% of the total PE exit value in the first nine months of 2015.
+==Confusion over ''Financial Times'' figures==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Why-FDI-data-on-India-is-causing-confusion-01102015011018 ''The Times of India''], Oct 01 2015
+[[File: Foreign Fund flows in India, 2014-15.jpg|Foreign Fund flows in India, 2014-15; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Why-FDI-data-on-India-is-causing-confusion-01102015011018 ''The Times of India''], Oct 01 2015|frame|500px]]
+Subodh Varma
+'''RBI pegs fund flow at $20.6Bn in first half of 2015 against FT estimate of $31Bn'''
+A recent report by a data consultancy owned by the FT of London created a stir by estimating that India is now the most favourite destination for foreign direct investment, beating China and the USA. The fine print indicates that they are talking about “estimated capital expenditures“ in greenfield, that is, new ventures. By this estimate, India attracted $31 billion compared to China's $28 billion in the first half of 2015.
+Reserve Bank of India (RBI) data for foreign investment flows does not appear to reflect this, causing much puzzlement in India. The total foreign direct investment that flowed into India between January and June 2015 is pegged at $20.6 billion. If you deduct the outflow from India in the form of outgoing FDI from India, this gets pared down to $19 billion.
+Besides this inflow, there is also foreign portfolio investment mainly by institutional investors in the stock market. This was about $17 billion in the first half of 2015.
+When put together, these two components of investment  direct and portfolio  yields about $31.5 billion for the same period. But this could hardly be what the FT report is talking about since much of this is neither greenfield nor capital investment.
+The other puzzling aspect of the FT report is the com parison with China.
+According to the National Statistical Bureau of China, foreign direct investment into China in the first half of 2015 was a whopping $68.4 billion, more than three times that of India's $20.6 billion, between January and June 2015.
+A comparison of RBI data between the first halves of 2014 and 2015 shows that incoming FDI has increased by about 16% in 2015 but outgoing FDI has drastically declined, probably due to weakening economies around the world. Hence net FDI inflow to India has jumped up from $8.8 billion to $19 billion.
+Analysis of this data by India's Department of Industrial Policy and Promotion (DIPP) indicates that most of the foreign direct investment has come into the IT sector followed by automobiles, trade and the financial sector. Major sources of FDI in India remain Singapore and Mauritius followed by the Netherlands, US and Germany .
+Net portfolio investment has, however, sharply declined by about 23% from $21.7 billion in the first half of 2014 to $16.8 billion in the comparable period of 2015.
+As a result of these opposing trends, the net foreign flows into India have shown only a marginal increase from $30.5 billion to $31.5 billion between the first halves of 2014 and 2015.
+==2013-19==
+[[File: Foreign Direct Investment (FDI)- India- 2013-19.jpg|Foreign Direct Investment (FDI): India: 2013-19 <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F05%2F29&entity=Ar00307&sk=AB38BC42&mode=text  Sidhartha, May 28, 2019: ''The Times of India'']|frame|500px]]
+''' See graphic ''':
+'' Foreign Direct Investment (FDI): India: 2013-19 ''
+=Countries that invest most in India=
+==2000-19==
+[https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F05%2F29&entity=Ar00307&sk=AB38BC42&mode=text  Sidhartha, May 29, 2019: ''The Times of India'']
+[[File: Singapore’s investments in India vis-à-vis Mauritius’- 2009-2019.jpg|Singapore’s investments in India vis-à-vis Mauritius’: 2009>2019 <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F05%2F29&entity=Ar00307&sk=AB38BC42&mode=text  Sidhartha, May 29, 2019: ''The Times of India'']|frame|500px]]
+Foreign direct investment (FDI) inflows from Singapore were twice that from Mauritius during the last financial year as companies opted to route funds into the country via the southeast Asian city-state, instead of the island nation in the Indian Ocean, the most preferred route for overseas flows so far, after the tax treaty with both the countries was reworked.
+In 2018-19, inflows from Singapore were estimated at $16.2 billion, compared with $8.1 billion from Mauritius, latest government data showed. This is only the third time inflows from Singapore have topped those from Mauritius, with investment advisers attributing the change to the revamped tax treaty. After 33 years, India and Mauritius had agreed to amend the tax treaty, allowing authorities there to tax capital gains on transfer of Indian shares acquired from April 2017.
+''' ‘PE investors in S’pore boost FDI into India’ '''
+A similar amendment was made in the tax treaty with Singapore, which also came into force from April 1, 2017. Unlike the tax treaty with Singapore, the original pact with Mauritius did not require “significant presence”.
+As a result, since April 2000, 32% of the inflows have come through Mauritius because investors from the US, the UK and Germany too opted to route their investment via this window. Tax consultants said given the parity in tax treatment now, investors are preferring to route investments via Singapore.
+“The choice of source of investment depends a lot on the bilateral tax agreement. Besides, Singapore offers other advantages on the ease of doing business front,” said Dhiraj Mathur, who was involved with FDI policy before turning a consultant.
+Akash Gupt, partner and leader for regulatory practice at PwC India, said the presence of a large number of private equity investors in Singapore also helped boost inflows into India. “Now that there is tax neutrality, people are opting for Singapore as it is more accessible and approachable and offers tax incentives through lower tax rates if you locate your regional headquarters there,” added EY India’s Rajiv Chugh.
+Besides, companies such as Walmart, which acquired Flipkart in a $14 billion deal, made the payments in the island nation as the e-tailer was registered in Singapore. As a result, the fresh investment of $2 billion came through Singapore. The change is significant since a decade ago, inflows from Mauritius were almost four times the investment from Singapore. The full year FDI data also showed FDI into the country went up 6% to top $64 billion.
+==2020==
+[[File: Biggest sources of FDI inflows, April- December 2020.jpg|Biggest sources of FDI inflows, April- December 2020 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F03%2F10&entity=Ar00320&sk=F21A306F&mode=text  March 10, 2021: ''The Times of India'']|frame|500px]]
+'''See graphic''':
+'' Biggest sources of FDI inflows, April- December 2020 ''
+[[Category:Economy-Industry-Resources|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:India|F FOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIAFOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+[[Category:Pages with broken file links|FOREIGN DIRECT INVESTMENT (FDI): INDIA
+FOREIGN DIRECT INVESTMENT (FDI): INDIA]]
+=India’s share in global FDI=
+==2014: India no.9 in the world==
+[[File: India and the world, The 15 countries that received the highest FDI in 2014. India was no 9.jpg| India and the world: The 15 countries that received the highest FDI in 2014. India was no. 9; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=05_10_2015_010_063_002&type=P&artUrl=STATOISTICS-WEAK-PULL-05102015010063&eid=31808 ''The Times of India''], October 5, 2015|frame|500px]]
+See graphic: 'India and the world, The 15 countries that received the highest FDI in 2014. India was no 9'
+==2015: India no. 1 destination==
+[[File: India and the other top nine FDI destinations, Jan-Jun 2015.jpg|India and the other top nine FDI destinations: Jan-Jun 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=India-pips-US-China-as-No-1-FDI-30092015001025 ''The Times of India''], Sep 30 2015|frame|500px]]
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=India-pips-US-China-as-No-1-FDI-30092015001025 ''The Times of India''], Sep 30 2015
+[[File: EY analyses why India is suddenly the most favoured investment destination in 2015.jpg| EY analyses why India is suddenly the most favoured investment destination in 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=15_10_2015_025_030_002&type=P&artUrl=INDIA-CALLING-15102015025030&eid=31808 ''The Times of India''], October 15, 2015|frame|500px]]
+'''India pips US, China as No. 1 FDI destination'''
+''Rises 16 llaces in ranking of competitiveness''
+India has emerged on top of the foreign direct investment (FDI) league table, overtaking China and the US, according to fDi Markets, the FT data service.
+A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US.
+India has also moved up on the World Economic Forum's Global Competitiveness Index by 16 places to 55th position from 71st.
-=The source of this section=
+The two reports come as a shot in the arm for the Modi government, which has taken several steps to attract foreign investment and has helped revive the mood of investors since it came to office in May 2014.
-''' INDIA 2012 '''
+“Satisying, our efforts are paying off,“ finance minister Arun Jaitley tweeted.
-A REFERENCE ANNUAL
+The government has unveiled several initiatives like `Make in India' and `Digital India' to lure investors.
-'' Compiled by ''
+It has moved to ensure that the country moves up on the World Bank's Ease of Doing Business and states have also started their clean-up act on this parameter.
-RESEARCH, REFERENCE AND TRAINING DIVISION
+But experts say there are several areas where the government needs to step up reforms. The areas where investors want more reforms include tax policy, labour laws, cutting red tape and issues linked to land acquisition.
-PUBLICATIONS DIVISION
+Investors have started taking interest in India and the recent visit of PM Modi to Silicon Valley triggered enormous interest from software and technology czars. India's growth is expected to be the fastest among large economies. Several multilateral agencies have also pointed out that India is a beacon of hope at a time when emerging economies are taking a hit and the Chinese stock market is witnessing volatility. Experts say India is expected to benefit from the slowdown in China and the overall sluggishness in global commodity prices including crude oil is expected to provide a cushion to the growth fortunes of Asia's third largest economy . The government is confident of achieving close to 8% growth in the current fiscal year. India has also moved up on Global Competitiveness Index by 16 places to 55th position.
-MINISTRY OF INFORMATION AND BROADCASTING
+The FT said that for the past several years, China and the US have vied for FDI supremacy and fought each other nearly to a draw last year, with the US ranking as the number one greenfield destination by number of projects and China coming in first by capital expenditure.
-GOVERNMENT OF INDIA
+It said India ranked fifth last year for capital investment, after China, the US, the UK and Mexico. In a year when many other major FDI destinations posted declines, India experienced one of 2014's best FDI growth rates, increasing its number of projects by 47%, the article said.
-=Meghalaya=
+“India is tracking well ahead of where it was at this time last year: it has more than doubled its midyear investment levels, attracting $30 billion by the end of June 2015 compared with $12 billion in the first half of last year,“ the newspaper said.
-Area : 22,429 sq km
+“Research from fDi Markets found 97 of 154 countries typically classed as emerging markets experiencing declines in capital expenditure on greenfield investment projects in the first six months of this year compared with the same time period last year,“ it said.
-Population : 29,64,007 (Prov. 2011 Census)
+==2016: India was among Top 15, but got 2% of global FDI==
+'''See graphic:'''
-''' Capital : '''  Shillong
+''Biggest FDI destinations, 2016; Annual growth rate among top FDI recipients, 2006-16''
-Principal Languages : Khasi, Garo and English
+[[File: Biggest FDI destinations, 2016; Annual growth rate among top FDI recipients, 2006-16.jpg|Biggest FDI destinations, 2016; Annual growth rate among top FDI recipients, 2006-16 <br/> From: [http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F11%2F23&entity=Ar01118&sk=CEA32D50&mode=text  November 23, 2017: ''The Times of India'']|frame|500px]]
-==HISTORY AND GEOGRAPHY==
+== FDI confidence: India 8th in 2017, 11th in 2018==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F03&entity=Ar02816&sk=439C771E&mode=text  India ranks 11th in FDI confidence, May 3, 2018: ''The Times of India'']
-Meghalaya was created as an autonomous State within the State of Assam on 2
-April 1970. The full-fledged State of Meghalaya came into existence on 21 January
-. It is bounded on the north and east by Assam and on the south and west by
-Bangladesh. Meghalaya literally means ‘the Abode of Clouds’ and is essentially a
-hilly State. It is predominately inhabited by the Khasis, the Jaintias and the Garos
-tribe communities. The Khasi Hills and Jaintia Hills which form the central and
-eastern part of Meghalaya form an imposing plateau with rolling grassland, hills
-and river valleys. The southern face of the plateau is marked by deep gorges and
-abrupt slopes, at the foot of which, a narrow strip of plain land runs along the
-international border with Bangladesh.
-==AGRICULTURE==
+India was ranked 11th in A T Kearney’s FDI confidence index and retained its position as the second highest ranking emerging market.
-Meghalaya is basically an agricultural State in which about 81 per cent of its
+But, India was down three notches in the overall ranking from last year. US topped the list, followed by Canada, while Germany dropped to the third place. Overall, India remains among the top investment destinations due to its market size and rapid economic growth.
-population depends primarily on agriculture for their livelihood. The State has a
-vast potential for development of horticulture due to the agro-climatic variations,
-which offer much scope for cultivation of temperate, sub-tropical and tropical fruits
-and vegetables.
-Besides major food crops of rice and maize, Meghalaya is renowned for its
+“We are in a very exciting space of growth, opportunity and transformation. For long, India has been a very exciting destination for investors. Now, especially with the current political stability and positive reforms environment, India will only gain its attractiveness as an investment destination,” said Vikas Kaushal, MD and country head, A T Kearney India. The IMF projects India’s economy will grow by 7.4% in 2018, the fastest growth rate of any major economy. Inward FDI flows already increased to an estimated $45 billion in 2017, a record high.
-orange (Khasi Mandarian), pineapples, bananas, jackfruit, temperate fruits like plum,
-pear and peach, etc. Cash crops, popularly and traditionally cultivated include
-potato, turmeric, ginger, black pepper, arcanut, bedeviling, tapioca, short staple
-cotton, jute and mesta, mustard and rapeseed. Special emphasis is presently being
-laid on non-traditional crops like oilseeds (groundnut, soyabean and sunflower),
-cashewnut, strawberry, tea and coffee, mushroom, medicinal plants, orchids and
-commercial flowers.
-==INDUSTRIES==
+==2017: India moved to top 10 FDI-hosts==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F10&entity=Ar01508&sk=836783CF&mode=text June 10, 2018: ''The Times of India'']
-The Meghalaya Industrial Development Corporation Limited, as the Industrial and
-Financial Institution of the State, has been rendering financial assistance to the local
-entrepreneurs. District Industries Centres have been working in the field for the
-promotion and development of small-scale, village, tiny and cottage industries. A
-number of industrial projects have been set up for the manufacture of iron and steel
-materials, cement and other industrial products.
-==FESTIVALS==
+India has moved up a notch to enter the top 10 FDI host economies in 2017 despite the challenging condition of global foreign direct investment flows.
-A five-day-long religious festival of the Khasis ‘Ka Pamblang Nongkrem’ popularly
+According to the World Investment Report 2018, global flows of FDI fell by 23% in 2017, largely due to contraction across developed economies. FDI flows across developing economies, especially in Asia have remained stable, even though the growth has been flat, according to the commerce ministry.
-known as ‘Nongkrem dance’ is annually held at Smit village, 11 km from Shillong.
-‘Shad Sukmynsiem’, another important festival of the Khasis is held at Shillong
-during the second week of April. ‘Behdeinkhlam’, the most important and colourful
-festival of the Jaintias is celebrated annually at Jowai in Jaintia Hills in July. ‘Wangala
-festival’ is observed for a week to honour Saljong (Sungod) of the Garos during
-October – November.
-=== Behdieñkhlam===
+“2018 is slated to be a tough year with the slowing pace of international production and stagnation of growth in GVCs. Having said that, the Ministry of Commerce & Industry working on critical aspects such as modernising existing bilateral, multilateral and plurilateral treaties, and releasing the new industrial policy focussed on making the Indian industry future ready,” a statement from the ministry said.
-[http://www.theshillongtimes.com/2018/07/02/behdienkhlam-a-prayer-for-bountiful-harvest-and-to-ward-off-evils/  HH Mohrmen, Behdieñkhlam: A Prayer For Bountiful Harvest And To Ward Off Evils, July 2, 2018:  ''The Shillong Times'']
+Data showed FDI inflows into India rose 3% to $62 billion during 2017-18, the slowest pace of expansion since the Modi government came to office four years ago. FDI inflows during the previous fiscal were estimated at a shade over $60 billion.
-Behdieñkhlam is the most important festival of the Pnars in both the East and West Jaintia hills District of Meghalaya. The term Behdieñkhlam is made up of three words. In the Pnar parlance, ‘Beh’ literarily means to chase or to rid off, ‘dieñ’ means wood or log and ‘khlam’ means plague, epidemic or pestilence. Therefore Behdieñkhlam literarily means the festival to rid away plague. To define Behdieñkhlam by merely using the literary meaning of the festival is like describing the book by simply looking at its cover because that is not what Behdieñkhlam is all about; in fact it is more than chasing away plague.
+==2017: 11% dip in FDI for India ==
+[https://timesofindia.indiatimes.com/business/india-sees-dip-in-fdi-flow-us-china-retain-top-slots/articleshow/66428995.cms  October 30, 2018: ''The Times of India'']
-There are altogether 6 annual Behdieñkhlam festivals celebrated by the Pnars of different communities called Raids. The first Behdieñkhlam was celebrated by the raid Chyrmang, followed by the raid Jowai, Tuber, Ialong, Mukhla and raid Muthlong.
+[[File: India and other major economies- FDI received, and Change over 2016.jpg|India and other major economies: FDI received, and  <br/> Change over 2016 <br/> From: [https://timesofindia.indiatimes.com/business/india-sees-dip-in-fdi-flow-us-china-retain-top-slots/articleshow/66428995.cms  October 30, 2018: ''The Times of India'']|frame|500px]]
-The main part of the festival is the Council of the 4 high priest of the four raids, the raid Jowai, raid Tuber, raid Chyrmang and Ialong. K C Rymbai former Daloi of the elaka Jowai confirmed that the festival indeed has a fine connection with the agricultural activities of the people. Every part of the rituals performed throughout the year in preparation of Behdieñkhlam are intricately linked to agriculture. It is after the ritual ‘Thoh Langdoh’ is performed that people can start planting cucumber, pumpkins, beans and various types vegetables and it is only after another ceremony ka ‘Chat thoh’ that farmers can start tilling their paddy fields.
+[[File: Other major Asian FDI destinations, 2017.jpg|Other major Asian FDI destinations, 2017 <br/> From: [https://timesofindia.indiatimes.com/business/india-sees-dip-in-fdi-flow-us-china-retain-top-slots/articleshow/66428995.cms  October 30, 2018: ''The Times of India'']|frame|500px]]
-The various Behdieñkhlam festivals celebrated by the different raid also indicate the many important events of rice cultivation. The first Behdieñkhlam is that of raid Chyrmang and it symbolises the onset of the season for tilling the paddy fields. Jowai Behdieñkhlam signifies the season after the seeds are placed on the lap of mother nature and the raid Tuber’s Behdieñkhlam coincides with the time that farmers are done with weeding, the raid Ialong celebrates its Behdieñkhlam when the rice plant starts to flowers while the celebration of the raid Mukhla’s festival indicates the advent of the harvest season.
-Behdieñkhlam therefore is not merely about ridding off the plague but it testifies to the fact that the Pnars of Jaintia were the first tribe in the region to adapt to more developed farming practices.
+Despite a downturn in investment, Asia remained the largest recipient of foreign direct investment (FDI) in 2017, attracting over 36% of global FDI — up from nearly 28% in the previous year. The US retained the top slot, while China remained the favourite destination in Asia. India, however, saw an 11% dip in FDI flow to $40 billion.
-The immediate rituals and sacrifices that precede the designated four days of the festival are the ‘kñia khang’ performed on Muchai; the first day after the market day of the week and ‘kñia pyrthad’ sacrifice to the thunder god on the Mulong the seventh day of the same week. But the festival officially begins on the sixth day (Pynsiñ) of the eight days a week traditional calendar of the Jaintias.
+'''See graphics''':
-Though the main features of the festival celebrated by the different raids are the same yet there are some variations in the rituals performed. In Jowai; the three days and four nights annual Behdieiñkhlam festival always starts with the tradition of offering food to the ancestors in a tradition called, “Ka Siang ka Pha” or “Ka Siang ka Phur.”
+''India and other major economies: FDI received, and  <br/> Change over 2016''
-The feast of offering food to the dead is a mark of veneration and gratitude to the ancestors the forebears of the clan and the tradition. In the Khasi Pnar concept of the afterlife, departed souls reside with the Creator and eat betel nut in the courtyards or corridors of God’s abode. The spirit of the dead (ki syngngia ki saret) every year, descend down to the Earth to partake in the feast provided by the descendants to propitiate the departed souls.
+''Other major Asian FDI destinations, 2017''
-Ka Siang ka pha is celebrated by every clan except when there is sickness in the family or if death has just occurred in the family. The family which had just met with bereavement, does not perform the offerings because ‘ka siang ka pha’ has already been offered to the departed souls as part of the last rites of a person. But not all clans perform their offerings to the dead on Pynsiñ. There are also clans which perform ‘ka siang ka pha’ on Muchai the last day of the festival.
+==2018: India, 5<sup>th</sup> most attractive investment destination==
+[https://timesofindia.indiatimes.com/business/india-business/global-ceos-see-india-as-5th-most-attractive-investment-destination/articleshow/62609122.cms  Sidhartha, Global CEOs see India as 5th most attractive investment destination, January 22, 2018: ''The Times of India'']
-All kind of foods are placed in brass plates and they must always be in odd numbers 5, 7 or 9. Care is also being taken that the favourite food of the deceased is placed as part of the offering which could be anything from fruits and cigarettes to rice and curry etc. The next part of the rites lies on the maternal uncle to invoke the spirits to partake of the offering. After the Maternal uncle’s invocation the whole family gathered for the rites remains silent  for sometimes in a symbolic moment to allow the ancestors’ spirits to consume the offerings. Then the offering is shared among the family members. Only a clean female member of the family is allowed to prepare the offerings, women who are in their  menstrual cycle are not allowed to do the preparation.
+[[File: Top 10 investment destinations (2018).jpg|Top 10 investment destinations (2018) <br/> From: [https://timesofindia.indiatimes.com/business/india-business/global-ceos-see-india-as-5th-most-attractive-investment-destination/articleshow/62609122.cms  Sidhartha, Global CEOs see India as 5th most attractive investment destination, January 22, 2018: ''The Times of India'']|frame|500px]]
-In the traditional calendar “Mulong,” is the day before “Musiang the market day,” the market day in Jowai is also the third day of the fest. By the end of the day all the ‘dieiñkhlam’ 9 round neatly carved logs are kept at their allotted place at different locations in the Ïawmusiang market area. The Dieñkhlams are prepared by the 7 localities namely Tpep-pale, Dulong, Panaliar, Lumïongkjam, Loompyrdi Ïongpiah, Loomkyrwiang and Chilliang Raij being the khon Raij was by tradition given the responsibility to prepare and bring two round logs called ‘Khnongblai’ and ‘Symbood khnong’.
+'''See graphic''':
-On this day all male members of the Niamtre march in a procession and dance to the traditional drums and flutes to bring the dieñkhlam from the forest to Ïawmusiang. Early in the morning families are busy preparing ja-sngi (lunch) for every male member of the society and they in turn get ready to join the community to bring the dieñkhlam.
+''Top 10 investment destinations (2018)''
-The third day of the holy week is “Musiang” and on this particular day all the dieiñkhlam and the Khnong are carried from the heart of Jowai town to the respective localities. Apart from the 7 dieñkhlam and two khnongs, hundreds of 15 to 19 feet trees called ‘ki Dieñkhlam khian (small Dieñkhlam) are used by the followers of the Niamtre. Two or three of these tiny Dieñkhlam are kept in the frontage or veranda of every house of the followers of the Niamtre. The tiny Dieñkhlam are used to beat the rooftops of the house symbolizing the act of chasing away the plague and evil spirits from the house and pray to the almighty God to bless the family.
-Muchai is the last day of the Behdieñkhlam festival of Raid Jowai. The day starts in the wee hours of morning with the tradition of ‘kyntiñ khnong’ at the Priestess’s official residence. The programme is followed by the Ka Bam tyngkong led by the Daloi at the clan-house of the first four settlers of Jowai town. But the main part of the festival is the coming together of all the khon (children) ka Niamtre at the sacred Aitnar, a pond in which the last significant part of the festival is performed.
+India moved up a notch to overtake Japan as the fifth most attractive investment destination in a survey of global CEOs, even as the International Monetary Fund said that the country will once again emerge as fastest growing major economy in 2018 amid signs of an improvement in the overall economic environment.
-The dance at Aitnar is that of the people who find joy on the arrival of U Tre Kirod (God) with the celebration of Behdieñkhlam. It also symbolizes the oneness of the people and everyone joyfully participates without any distinction. The ‘ïa knieh khnong’ traditions at the sacred pool is whence men compete to set foot on the ‘khnong’ which symbolizes cleansing of the souls and blessing for good health
+In a survey conducted by consulting firm PricewaterhouseCoopers, chief executives said that excluding their home market they are most likely to invest in the US, followed by China with the world's largest economy expanding its gap as corporate chiefs expect more rapid growth in America. While China held on to its popularity, India moved a up slightly but still trailed Germany and the UK as an investment destination.
-The climax of the day is the arrival of the colourful Rots/rong brought by the many dongs of  Jowai town to be displayed at the Aitnar, and all the beautiful rongs are then discard as part of the offering.
+The survey will come as a booster for Prime Minister Narendra Modi who will court international investors+ on Monday and Tuesday in a bid to get more investment into the country, especially in the manufacturing sector, which has remained sluggish and is crucial to job creation.
-Dat Lawakor is the last public event of every Behdieñkhlam; it is to ask God to indicate which of the two valleys around Jowai, ‘the Pynthor neiñ or the Pynthor wah’ upper or lower valley will yield a good harvest this year. It is similar to football but using a wooden ball with no goal post. The only rule of the game is that the team which can carry the ball to the designated end wins and the particular direction will reap better harvest that year.
+"Backed by definitive structural reforms, the India story has been looking better in the past one year. Most of our clients are optimistic about their growth. The government has made efforts to address concerns around areas like infrastructure, manufacturing and skilling, although newer threats like cybersecurity and climate change are beginning to play on the minds of our clients," said Shyamal Mukherjee, chairman, PwC India.
-The last ritual to be performed by the Daloi, the Lyngdoh and the other religious dignitaries at the Lyngdoh’s residence is called ‘pynleit sarang’. To maintain the sanctity of the religious festival, self-purification by way of abstinence from sleeping with their partners is observed by religious head conducting the various rites during the entire festival. After the ‘pynleit sarang’ ritual; the Daloi and the other religious heads can now return to the homes of their  respective wives.
+Aided by opening up of several key sectors over the last few years, foreign direct investment in India surged 17% to over $25 billion during the first half of the current financial year, even as private investment has remained muted due to excess capacity and high financial stress. It had for the first time topped $60 billion in 2016-17 but remains less than half of China's $137 billion in 2017, which was an increase of around 8%.
-Behdieñkhlam is therefore a festival which has many profound spiritual significances for the people.
+But IMF on Monday reiterated its earlier estimate that India will grow 7.4% in 2018 and accelerate to 7.8% in 2019 from 6.7% last year. In contrast, China, which IMF estimates suggested grew 6.8%, a ad faster than India, is estimated to slow down to 6.6% in 2018 and further to 6.4% next year.
-==TOURIST CENTRES==
+At a press conference, IMF chief Christine Lagarde urged global policymakers to "fix the roof" while the going was good, calling for a more inclusive development strategy as nearly one-fifth of developing and emerging economies saw their per capita income decline in 2017.
-Meghalaya is dotted with a number of lovely tourist spots where nature unveils
+She also asked for structural or fiscal reforms and called upon leaders to put together a robust global collaboration to fight corruption, improve conditions for trade, stop tax evasion and prevent catastrophic climate change.
-herself in all her glory. Shillong, the capital city, has a number of beautiful spots. A
-few of them are Ward’s Lake, Lady Hydari Park, Polo Ground, Mini Zoo, Elephant
-Falls, Shillong Peak overlooking the city and the Golf Course which is one of the
-best in the country.
-==TRANSPORT==
+==2018: India overtakes China==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F29&entity=Ar02421&sk=840AD02E&mode=text&fbclid=IwAR2hqkcg2D_tgygj2JEh0n_j9unNYKjN7z7GEh7dC61GKSr3kfRVe0CclR8  India pips China in attracting FDI in 2018, December 29, 2018: ''The Times of India'']
-'''Roads: ''' Six national highways pass through Meghalaya for a distance of 606
+[[File: Inbound M&A values in India and China, 2013-18.jpg|Inbound M&A values in India and China, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F29&entity=Ar02421&sk=840AD02E&mode=text&fbclid=IwAR2hqkcg2D_tgygj2JEh0n_j9unNYKjN7z7GEh7dC61GKSr3kfRVe0CclR8  India pips China in attracting FDI in 2018, December 29, 2018: ''The Times of India'']|frame|500px]]
-kilometer.
-''' Aviation:'''  The only airport in the State at Umroi, is 35 km from Shillong.
-==GOVERNMENT==
+For the first time in years, annual foreign direct investment (FDI) into India has been more than that in China in 2018.
-Governor : Shri Ranjit Shekhar Mooshahary
+Riding on mega deals by Walmart’s buyout of online retail marketplace Flipkart, along with acquisitions by Unilver and Schneider Electric, the year that will end soon has recorded inbound M&A deals worth $39.5 billion in India, compared to $33 billion in China, data from Dealogic showed. In 2017, China’s inbound M&A deals aggregated at $32.5 billion, which was almost 80% more than India’s $18.6 billion.
-Chief Secretary : Shri W.M.S. Pariat
+For India, relatively stable economic fundamentals with low inflation rate, strict management of fiscal deficits and introduction of a bankruptcy code tilted the country among investment destinations among global investors. On other hand, for China, ensuing trade war with the US is keeping foreign investors on the back foot, market players said.
-Chief Minister : Dr. Mukul Sangma
+Going into 2019, foreign investors feel India will still remain an attractive investment destination.
-Jurisdiction of : Falls under the jurisdiction of
+=Regions that attract the most FDI=
-High Court Guwahati High Court. There is a
+==2017> 19: Top regions, sectors==
-High Court Bench at Shillong.
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F03%2F04&entity=Ar00117&sk=E82DFC80&mode=text  Allirajan M, NCR overtakes Maha as top destination for FDI equity, March 4, 2019: ''The Times of India'']
-==AREA, POPULATION AND HEADQUARTERS OF DISTRICTS==
+[[File: The six regions that attracted the most FDI, 2017-19..jpg|The six regions that attracted the most FDI, 2017> 19. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F03%2F04&entity=Ar00117&sk=E82DFC80&mode=text  Allirajan M, NCR overtakes Maha as top destination for FDI equity, March 4, 2019: ''The Times of India'']|frame|500px]]
-District Area (sq km) Population Headquarters
+''Share Of Inflows Rises From 14% To 25% In 3 Yrs''
-(Provisional Census-2011)
-East Khasi Hills 2,748 8,24,059 Shillong
+The National Capital Region has pipped long-standing leader Maharashtra in attracting FDI (foreign direct investment) equity inflows into the country.
-West Khasi Hills 5,247 3,85,601 Nongstoin
+A report by Department of Industrial Policy and Promotion (DIPP) mentions that the ‘New Delhi region’, covering the national capital and parts of UP and Haryana (which is broadly contiguous with NCR), received FDI equity inflows of Rs 57,333 crore ($8.3 billion) in the first nine months of 2018-19. FDI equity inflows aggregated about $33.5 billion in the first nine months of fiscal year 2018-19, a 7% decline compared with the same period in the previous fiscal year.
-Ri-Bhoi 2,448 2,58,380 Nongpoh
+Maharashtra, which had the highest share of FDI in the first nine months of fiscal 2016-17 (49%), has witnessed a consistent drop in its share. Its share in total FDI flows fell to 32% during the corresponding period in fiscal 2017-18 and further to 24% in the same period in FY2018-19.
-Jaintia Hills 3,819 3,92,852 Jowai
+In contrast, NCR has seen a sustained increase in its share in total FDI equity inflows — from 14% in the first nine months of FY2016-17 to 17% in FY2017-18 and further to 25% in the same period in FY2018-19.
-East Garo Hills 2,603 3,17,618 Williamnagar
+Maharashtra’s FDI inflows fell 30% year-on-year (y-o-y) to Rs 56,346 crore ($8 billion) in the first nine months of FY19 while that of Tamil Nadu contracted 26% y-o-y to Rs 14,166 crore ($2.1 billion).
-West Garo Hills 3,677 6,42,923 Tura
+Maharashtra, Delhi, Tamil Nadu, Karnataka and Gujarat received nearly 75% of the total FDI equity inflows into the country in the first nine months of FY2018-19.
-South Garo Hills 1,187 1,42,574 Baghmara
-= Bangladesh border =
+'''Top five sectors account for 65% of FDI equity inflows'''
-==Villages on the border==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=These-Indians-might-as-well-be-in-Bangladesh-05112017017023  Nergish Sunavala, Uma Kadam, These Indians might as well be in Bangladesh, Nov 5 2017: The Times of India]
+Tamil Nadu’s share in FDI inflows declined to 14% in the first nine months of FY2018-19 from 18% during the corresponding period in FY2017-18, but it was much higher than the 3% share in the same period in FY2016-17, data showed. FDI inflows into Karnataka also slumped 26% y-o-y to Rs 33,014 crore ($4.74 billion). Gujarat, however, saw higher inflows — from $787 million in the first nine months of FY2017-18 to about $1.7 billion in the same period in FY2018-19.
-''Lack of a motorable road forces residents of Meghalaya's border villages to trade in takas and trek to Bangladesh for medical emergencies''
+States that have been laggards in the past in attracting FDI, are also catching up fast. Andhra Pradesh, West Bengal, Kerala, Rajasthan, Punjab, Haryana and Himachal Pradesh collectively received nearly 15% of FDI equity inflows in the first nine months of FY2018-19.
-It was love at first sight. But Nirman is a shy man not used to sharing his feelings in public so that's not how he describes the first time he met Dila. His version is more matter-of-fact: “I saw her and asked for her hand in marriage“. It's hard to get him to open up about his late wife. After a lot of prodding, he finally whispers a few details: she loved cricket, football and fishing; and she didn't want to die.
+They had only a 4% collective share in the comparable period the previous year. “Investments in emerging economies were lower partly due to uncertainty in the global markets,” said Rucha Ranadive, economist, CARE Ratings. “Foreign investments in emerging markets have mainly been adversely impacted by global headwinds such as the slowdown in the global economy, trade war between the US and China, concerns over Brexit, tightening of monetary policies by major global central banks, rupee depreciation and geo-political tensions among others.”
-But Dila did die because their village, Huroi in Meghalaya, has no motorable road.It was exactly two years and two months ago.She'd been in labour all night but her baby's head wasn't crowning. Finally, 15 villagers lifted her up in a blood-stained bedsheet, strung it across two bamboo poles, and began walking to a hospital in Bangladesh.
-They carried Dila, who was screaming in pain and bleeding profusely, over a hilly terrain through the dense East Jaintia Hills forest while dodging the Border Security Force (BSF). While the Bangladeshi hospital in Kanaighat was just an hour away , the Umkiang primary health centre on the Indian side was a five-hour trek through the jungle. Driving to Umkiang over the `kacha' road would have taken seven hours.
+The top-5 sectors — services, computer hardware and software, chemicals, telecommunication and trading— accounted for nearly 65% of total FDI equity inflows. During the first nine months of FY2018-19, chemicals received highest FDI inflows of $6.07 billion, which was 18% of the total FDI equity inflows during this timeframe.
-Dila, who had lost her own mother as a child, died shortly after reaching the hospital. Before she lost consciousness, she begged her husband to be a good father to their six boys. For a long time, the youngest, who was three-years-old, would wake up at night to search for his mom.“Now, he doesn't remember her,“ says Nirman.
+It was much higher than the 3% share of the sector in the comparable period last year and was five times more than the inflows amounting to $1.1 billion in the first nine months of FY2017-18. It was followed by services with nearly 17.7% share and by computer software and hardware (14% share). While inflows in the services sector grew by 28% y-o-y, it declined 8% in computer hardware and software.
-Huroi, where the couple lived, is one of four Indian villages that might as well be in Bangladesh. The others are Lejri, Lahalein (aka Lailong) and Hingaria. In these border villages, which have about 3,800 residents, people buy Bangladeshi goods with Bangladeshi currency (takas), call India from Bangladeshi SIM cards and rush to Bangladeshi hospitals during emergencies.Shops accept takas and double up as currency exchange kiosks. And villagers, most of whom know Bangla, admit that 70-90% of their income is in takas. We even met a nine-year-old named `Medical' after the hospital where he was born  Osmani Medical College in Sylhet, Bangladesh.
+=Rules, changes in=
+==November 2015: Rules changed for 15 sectors==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Govt-tries-to-move-beyond-Bihar-goes-for-11112015001044 ''The Times of India''], November 11, 2015
+[[File: FDI in India, the measures announced for 15 sectors in November 2015.jpg|FDI in India: The measures announced for 15 sectors in November 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Govt-tries-to-move-beyond-Bihar-goes-for-11112015001044 ''The Times of India''], November 11, 2015|frame|500px]]
-The villagers would prefer to turn to India for their needs. But navigating the 35km unpaved stretch of the Sonapur-Borghat road that leads to these villages is a costly, time-consuming endeavour. During the monsoon, which lasts about six months, driving over this road is akin to manoeuvring a jeep through quicksand. Drivers double up as car mechanics, replacing parts and fixing oil leaks en route, and a team of six men, armed with shovels and tasked with pushing the car, accompany every vehicle.
+'''Govt tries to move beyond Bihar, goes for FDI reforms'''
-A Rs 98-crore proposal to blacktop the Rymbai-Jalalpur road, which overlaps 15km of the `kacha' Sonapur-Borghat road, is awaiting an environmental impact assessment report. And plans to repair the Sonapur-Borghat road haven't progressed beyond a concept paper. Neither the area's MLA nor the district's deputy commissioner can provide even a rough timeline for these projects. But work on a border fence is racing along, restricting Lahalein and Lejri's access to Bangladeshi markets.
+The government announced a raft of changes in the foreign direct investment (FDI) rules for 15 sectors -including retail, defence, construction, banking and electronic media. The PM also was keen to ensure that the rules provide a boost to those manufacturing locally , with sources pointing to the decision to allow “Indian manufacturers“ to retail their goods, including on e-commerce plat forms -a move that will benefit the likes of Fabindia and Hidesign. Other “manufacturers“ too have been allowed to enter the retail arena without the government's approval. In a move that will make it easier for private banks to raise capital, the government has permitted full fungibility of foreign investment in private banks. This means that there will be no sub-limits for foreign portfolio investors (FPIs).
+While foreign direct investment of up to 74% was permitted until now, portfolio investment -investments by foreign institutional investors -was capped at 49%. Also, banks had to approach the foreign investment promotion board (FIPB) for any increase in foreign investment above 49%.
+The introduction of fungibility does not, however, mean that strategic investors get a free hand in picking up chunky stakes in banks. RBI regulations require that individual investor holding is capped at below 5%. Also, even promoters of banks are required to dilute their stake below 20% over a period of time.
+The relaxation of cap on sub-limits is in keeping with the government's proposal to announce composite caps for FDI in various sectors announced in July 2015. However, at the time of the announcement banks were kept out as they were considered `sensitive'.
+==2016: Liberalised FDI rules==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Foreigners-can-now-hold-100-stake-in-food-21062016001042 ''The Times of India''], Jun 21 2016
-Since their inception, the economy of all four villages has rested on the sale of betel nut and paan leaves to Bangladeshi traders, who pay in takas. Villagers then use this Bangladeshi currency to pay for clothes, food  even hens  that are smuggled across the border by Bangladeshi salesmen. Indians know they are at a disadvantage in this trade because the Bangladeshis set the exchange rate; but without a `pakka' road, villagers feel trapped into accepting their terms.
+'''Foreigners can now hold 100% stake in food retail, airlines'''
-Along with the fencing, the BSF has built a new road  not meant for civilians  but frequented by Lejri and Lahalein residents during emer gencies. Unfortunately , the border road passes over a river, which only has a footbridge, so transporting heavy goods to and from Umkiang market isn't viable. To bypass the border fence and continue selling their goods to Bangladeshi businessmen, desperate villagers have begun wading into treacherous rivers. A few have drowned mid-stream. The fencing has also restricted villagers' access to their own fields. In 2015, Lejri's Brave Sumer slipped across the border to collect betel nuts from a field he'd cultivated before it was demarcated as no man's land. He was apprehended by Bangladeshi border guards, brutally beaten up, and imprisoned for 1.5 years. “I thought my life was over,“ he says.
-“If the government doesn't want to fix the road, it should remove the fencing and give us to Bangladesh,“ says Lahalein's Lamsingh Tynsong. It's a popular sentiment in a region where development is stunted because there's no road to transport new infrastructure. Just a few months ago, Huroi got solar power systems from the government but no vehicle could fit the 60 lampposts allotted to the village. So, 240 residents  four per lamppost  carried them from Prang River to Huroi, which took over three hours.
+The Modi government announced fresh liberalisation of foreign direct investment (FDI) rules by throwing open food retail, airlines and private security firms to higher overseas flows. In addition, rules were eased for those looking to invest in defence, DTH services and single-brand retail as the Modi administration sought to showcase India as the “most open“ FDI destination in the world with only a handful of sectors requiring government clearance.
-The matter reached the Prime Minister's office last year when two college students, Kynjaimon Amse and Raja Suchen, penned a letter detailing the lack of facilities. “We live and survive upon the mercy of the Bangladeshi people,“ they wrote. Amse, a law student, and Suchen, a Huroi native, followed this up with letters to the National Human Rights Commission and the then Meghalaya Governor Banwarilal Purohit. The governor responded by criticising the state's “shameful inability“ to take care of its citizens and asking for an investigation into the Bangladeshi trade because it infringes on India's sovereignty .
+“The Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India,“ the PMO tweeted.
-In places where the border fence is still under construction, Bangladeshis cross through the jungle and hawk their wares door-to-door accepting takas in exchange. Representatives of all four villages feigned ignorance about this when they met Maham Singh Lhuid, the district's deputy commissioner, in March this year. They were justifiably terrified that the government would increase security at the border without bothering to repair the road, trapping them in between.
+The government suggested that the pitch will now change to how most sectors don't face FDI restrictions.“We will soon issue a negative list of sectors and all the others will be open to FDI,“ industrial policy and promotion (IPP) secretary Ramesh Abhishek told reporters after the changes were cleared at a high-level meeting chaired by the prime minister.
-During our visit, wary village councils banished Bangladeshi traders and held meetings to decide how much to reveal. The first person to speak openly was a village secretary , whose frustration peaked after his 11-month-old nephew paid the price for government apathy . The infant, who had a recurring illness, deteriorated suddenly and was rushed to a Bangladeshi hospital.There, doctors refused to treat him because he was Indian. He died the night we arrived.
+Although the finance ministry had kicked off discussions and the department of IPP had begun work on easing rules a few weeks ago, the decision came on the first working day after Raghuram Rajan's announcement to return to the US on completion of his term as RBI governor in September.
-Politicians visit Huroi with tall claims of being “road doctors“. Then they disappear for the next five years. In protest, Huroi residents have decided to boycott the 2018 elections to the state legislative assembly . However, Lhuid, the district's deputy commissioner, is hoping to pacify them by improving Huroi's subhealth centre and setting up a mobile tower before the election.
+Government officials said too much should not be read into the announcements sin ce Modi had scheduled the meeting earlier. But the market saw in the decisions the government's determination to counter any slide in business and market confidence and a signal to the world that reforms would continue. In particular, they come amid fe ars of the rupee coming under renewed pressure on account of a possible withdrawal of some of the $20 billionplus foreign currency deposits that are due for redemption later this year. But the urgency could be gauged from the fact that the PM used special powers to announce the decisions and did not wait for a green light from the cabinet, which was scheduled to meet on Wednesday.Modi had used the powers for a similar liberalization initiative in November 2015.
-But for people like 67-year-old Lokhi Suting nothing is more important than the road. She's lost four children, a grandchild and a husband because she refused to take them to Bangladesh for treatment. “I was always too scared to break the law,“ she says. Losing her children  three in quick succession  drove her insane with grief.She still cries for them at night  for her six-yearold boy , for her newborn baby , for the eldest who was 18 and for her son named `India'.
+For the government, this is at least the fourth round of major FDI changes since it took office two years ago and the second since last November when the rules for a number of sectors-aviation, construction and retail, among others--were eased. Earlier, the Modi government had raised FDI caps on insurance and defence while allowing overseas flows into railways, which had remained shut two decades after the 1991 reforms. The steps fuelled a 54% jump in FDI flows in the last financial year, to a record $55.5 billion.
-=Garo hills=
+This time, the focus has been on removing the stiff conditions that often came with opening up a sector and which tended to deter investors. The government has therefore eased rules for defence manufacturing companies where foreign ownership is in excess of 49%. Earlier, FDI was allowed only if foreign funds were accompanied with “state of the art“ technology. Now the rules say “modern technology“ will need to come, which is seen to be more flexible.“If the defence forces need some goods and it is produced using modern technology as opposed to state of the art, a local manufacturing facility can come up,“ said a senior government official.
-==2015: HC directs AFSPA imposition==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Meghalaya-HC-asks-Centre-to-impose-AFSPA-in-05112015010005 ''The Times of India''], Nov 05 2015
-Manosh Das
+Consultants acknowledged that rules had been simplified. “Defence is extremely technology-driven and OEMs (original equipment manufacturers) invest huge sums of money generating technology and intellectual property. The fact that there was no control permitted earlier was a major issue that was cited for not investing in India. That obstacle has now been removed and coupled with major simplification in the DPP (defence procurement procedure), OEMs should respond positively and proactively to these path-breaking reforms,“ said Dhiraj Mathur, a partner at global consulting firm PricewaterhouseCoopers.
-'''Meghalaya HC asks Centre to impose AFSPA in Garo Hills'''
+Even in case of food retailing, the PM chose to ignore protests from the food processing ministry on mandating sourcing norms for retailers in a segment where 100% FDI has been permitted without riders, including in e-commerce.
+The government also eased norms for setting up branch office, liaison office or project office. It also simplified rules for FDI in animal husbandry.
-The Meghalaya high court's directive on Monday asking the Centre to consider imposing the controversial Armed Forces (Special Powers) Act, 1958, in insurgency-ravaged Garo Hills has hit the state where it hurts most. The move comes amidst prolonged movements for the repeal of the act from the northeast which have rocked the region's states, especially Manipur, over the years.
+==2016: Abolition of Foreign Investment Promotion Board (FIPB)==
+[http://www.thehindu.com/business/budget/Centre-to-phase-out-2-decade-old-FIPB/article17127341.ece  Pradeesh Chandran, Centre to abolish FIPB, Feb 1, 2017: The Hindu Business Line]
-The high court cited rising cases of kidnappings and killings by militant groups in the Garo Hills in its order.
-“Recently , a central intelligence officer and a trader who had been kidnapped for ransom were killed by insurgents. According to data supplied by Meghalaya Police, Garo insurgents abducted 25 civilians, 27 businessmen, 25 private sector employees, five government employees and five teachers between January and October 31 this year,“ a police officer said.
+'''Government has shown its clear intent towards fast-tracking inflow of Foreign Direct Investments'''
-“This court... cannot remain a mute spectator and shy away from its constitutional obligation to protect the fundamental rights guaranteed by Part III of the Constitution in general and Article 21 in particular,“ the full bench of the Meghalaya HC observed in its ruling. The HC directed the Union home secretary and defence secretary to ensure compliance by placing the order before the Centre.
+The Budget 2017-18 has given a clear indication of the government’s intent to further liberalise policies related to foreign direct investment.
-=The Scheduled Tribes Census of India 2001=
+It also seeks to dismantle a two-decades-old body that was formed as a beacon of the economic liberalisation of 1993: the Foreign Investment Promotion Board (FIPB). The 1993 round of reforms under the P.V. Narasimha Rao regime, for the first time, threw the doors open to foreign investors.
-[http://censusindia.gov.in/Tables_Published/SCST/dh_st_meghalaya.pdf Census India.gov.in]
+One of the major announcements in Finance Minister Arun Jaitley’s Budget speech was the abolition of the FIPB.
-Meghalaya is predominantly a tribal state. The popula
+The board has offered a single window clearance for applications of prospective foreign investors in sectors falling in the approval route. The board has handled investment proposals worth up to ₹5,000 crore.
-tion of Meghalaya at 2001
-Census has been 2,318,822. Of these 1,992,862 persons are
-Scheduled Tribes (STs),
-which constitute 85.9 per cent of the state’s total popul
-ation. The state has registered
-.3 per cent decadal growth of ST population in 1991
--2001. There are total seventeen
-(17) notified STs in the state, and all of them have been enumerated in 2001 Census.
-==Population: Size & Distribution==
+'''Creation of FIPB'''
-.Individual ST wise, Khasi constitute more than half of the total ST population of
+The FIPB was formed under the Prime Minister’s Office in the mid-1990s as part of the first round of Indian economic reforms. It was reconstituted in 1996 and transferred to the Department of Industrial Policy and Promotion.
-the state (56.4 per cent). Garo is second with 34.6 per
+It was transferred to the Department of Economic Affairs under the Ministry of Finance in 2003, according to its website.
-cent. They together constitute 91
-per cent of the total ST population. Synteng is listed
-both as a sub-tribe under Khasi and
-also as a separate ST. In 2001 Census, 18,342 population
-of Synteng has been
-enumerated separately, which constitute 0.9 per cent of
-total STs. The Hajong (1.6 per
-cent), Raba (1.4 per cent), and Koch (1.1 per cent) have sizable population in the state,
-each representing above one per cent of the state’s tot
-al ST population. The rest of the
-STs are very small in their population size. Of these,
-five STs namely Man (Tai
-speaking), Dimasa, Chakma, Pawi, and Lakher are having
-population between 617 to 10
-only (Statement-1).
-[[File:meghylaya.png||frame|500px]]
+According to government rules, foreign investments in sectors under the automatic route do not require prior approval from the FIPB and are subject to sectoral rules.
-.The STs in Meghalaya are predominantly rural (84.4
-per cent). Individual ST
-wise, Koch are overwhelmingly confined to rural areas (
-.2 per cent), followed by Raba
-(92.6 per cent), Hajong (91.4 per cent), and Garo (88.7 per cent). On the contrary, higher
-urban population has been registered among Synteng (
-.2 per cent) and Khasi (18.6
-per cent).
-.Of the seven districts of Meghalaya, in four the ST p
+“More than 90% of the total FDI inflows are now through the automatic route. The Foreign Investment Promotion Board has successfully implemented e-filing and online processing of FDI applications.”
-opulation constitutes more
-than 95 per cent. East Khasi Hills has recorded the lowest
-at 77.5 per cent. This district,
-however, shares the highest 25.7 per cent of the total
-ST population of the state,
-Statement-2.
-[[File:meghylaya1.png||frame|500px]]
+“We have now reached a stage where FIPB can be phased out. We have therefore decided to abolish the FIPB in 2017-18,” Mr. Jaitley said.
-==Sex Ratio==
-.The matrilineal Meghalaya has recorded an even distribution of male and
-female population. Of the total ST population 996,5
-have been returned as males and
-,295 as females. Individual ST wise, Synteng (1024) and Khasi (1017) have recorded
-sex ratio higher than 1000 mark. Although Garo have r
-ecorded comparatively low sex
-ratio (979) in the state, their sex ratio, however, is better than the aggregated national
-average for STs (978).
-.The child sex ratio (0-6 age group) of 974 for STs in
+“Government has shown its clear intent towards fast-tracking inflow of FDI, and the scrapping of FIPB is a notable step that would go a long way in supporting the objective of ease of doing business,” stated Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals.
-the state is higher than the
-national average (973) for the corresponding populati
-on. Hajong (1003), Synteng (980),
-and Khasi (979) have registered child sex ratio above the state average (974). Quite
-contrary to the overall situation in the state, the c
-hild sex ratio is low among Raba (923).
-Literacy & Educational Level
-.The literacy rate among the STs in Meghalaya is 61.3
+Meanwhile, Mr. Jaitley also stated the government’s plan to pursue more radical liberalisation in Foreign Direct Investment norms.
-per cent, which is above
-the national average for STs (47.1 per cent). With 635 per cent male and 59.2 per cent
-female literacy rate, the ST women in the state are q
-uite at per with their male
-counterparts.
-.Khasi have registered the highest 66.1 per cent literacy rate among the six
+'''Government scraps 25-year-old foreign investment advisory body: 10 key takeaways'''
-major STs in the state. Literacy rate is the lowest among Koch (42.7 per cent), closely
-followed by Hajong (48.2 per cent). It is significant t
-hat among Khasi and Synteng, the
-females are better off in literacy status. On the cont
-rary with 58.9 per cent male and 37
-per cent female literacy, the Hajong women are lagging behind by as much as 22 per
-cent points. Significant gender gap in literacy has also
-been recorded among Raba,
-Koch, and Garo, Statement-3.
-[[File:meghylaya2.png||frame|500px]]
+[http://timesofindia.indiatimes.com/business/india-business/government-scraps-25-year-old-foreign-investment-advisory-body-10-key-takeaways/articleshow/58826737.cms  Ramarko Sengupta, May 25, 2017: The Times of India]
-.Merely 54.9 per cent of the ST population in the a
-ge group 5-14 years – the
-category of potential students – has been attending schools or any other educational
-institutions. Khasi have registered the highest 61.5 per cent, closely followed by Synteng
-(55.3 per cent) and Hajong (50.7 per cent). On the o
-ther hand Koch have recorded the
-lowest at 44.3 per cent. Less than half of the populati
-on among Garo (45 per cent) and
-Raba (47.8 per cent) are attending schools in this age
-group. 10.Of the total ST literates, 3.3 per cent are having
-educational level graduate and
-above. Synteng (4.6 per cent) and Khasi (4.4 per cent)
-are well ahead, among the six
-major STs in the state, with more than four per cent o
-f their literate population having this
-educational status. Rabha, Koch, and Hajong are compara
-tively lagging behind with one
-per cent of their literates having this level of educa
-tion.
-==Work Participation Rate (WPR)==
+'''HIGHLIGHTS'''
-.In 2001 Census, 42.8 per cent of the ST population
+The elimination of the decades-old panel is aimed at attracting more foreign direct investment.
-has been recorded as
-workers, which is below the aggregated national figure for STs (49.1 per cent). Of the
-total workers 76.5 per cent have been recorded as main
-workers and 23.5 per cent as
-marginal workers. WPR at 38.3 per cent among female is lower than male (47.4 per
-cent). In Meghalaya, the ST women are rather close to
-their male counterparts with 83.9
-per cent male and 67.2 per cent female as main workers, Statement-4.
-[[File:meghylaya3.png||frame|500px]]
+. The step follows Finance Minister Arun Jaitley's budget pledge in February to abolish the institution, which was set up soon after India embarked on its first market reforms in 1991, in a departure from decades of socialist planning
-.With regards to WPR there is not much variation am
-ong the different STs. The
-highest WPR of 46.5 per cent has been registered among
-Raba, while it is the lowest
-among Synteng (41.7 per cent). The Khasi and Hajong b
-oth have an identical WPR at
-.8 per cent. The gender gap in work participation is quite significant among Hajong
-(male 50.1 per cent, female 33.3 per cent) and Koch (m
-ale 52.5 per cent, female 37.5 per
-cent), while it is the lowest among Garo (male 47.7 per cent, female 40.2 per cent).
-==Category of Workers==
+. The FIPB currently vets FDI proposals requiring government's approval up to Rs 5,000 crore. Announcing the Cabinet's decision, Finance Minister Arun Jaitley said there are just 11 sectors left in which government's approval is needed for FDI.
-.Of the total ST main workers, 56.2 per cent have
+. The government has opened up most of the sectors to enable foreign companies to set up shop in the country, thus nearly eliminating the need for a dedicated panel.
-been registered as cultivators
-and another 13.1 per cent as agricultural labourers. 289 per cent have been returned as
-‘other workers’ and the remaining 1.8 per cent in the
-household industry category.
-.The highest 70.7 per cent cultivators have been reco
+. Sectors that are under the approval route for FDI includes defence and retail trading. As per the proposed mechanism, respective ministries would take care of the FDI proposals.
-rded among Raba,
-followed by Garo (67.4 per cent), Khasi (49.5 per cent), and Koch (49.2 per cent). On the
-other hand the percentage of cultivators is the lowest
-among Hajong (35.5 per cent). A
-substantial number of Hajong main workers have, however, been recorded as agricultural
-labourers (18.8 per cent). Koch have recorded the highe
-st 21.5 per cent agricultural
-labourers as main workers.
-==Marital Status==
+. In June 2016, the government had relaxed FDI norms in single-brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products, which meant these sectors did not need FIPB's approval anymore.
-.As regards marital status, 61.5 per cent of the popul
-ation is never married,
-.8 per cent currently married, 3.1 per cent widowed,
-and merely 1.6 per cent divorced
-/separated. It is significant to note a very high of 2.
-per cent population among Khasi
-and Synteng has been recorded as divorced/separated (St
-atement-5).
-[[File:meghylaya4.png||frame|500px]]
+. FIPB was set up in the early 1990s; it was then under the Prime Minister's Office. In 1996, it was transferred to the commerce ministry's department of industrial policy and promotion, and to finance ministry's department of economic affairs in 2003. Economic Affairs Secretary Shaktikanta Das heads it currently.
-.Merely 1.5 per cent of the ST female population b
-elow 18 years – the minimum
-legal age for marriage – has been recorded as ever mar
-ried. Of the six major STs, the
-Synteng has recorded the highest at 1.8 per cent, whi
-le Khasi the lowest at 1.4 per cent.
-.The ever married males below 21 years – the minimu
+. Post the FIPB abolition, the government might ease FDI norms further in a few sectors. There could be an increase in the FDI limit in print news media to 49 per cent from the current 26 per cent and single-brand retail could be on the full automatic route.
-m legal age for marriage
-– constitute only 1.3 per cent of the total ST populat
-ion of this age category. The Synteng
-has recorded the highest at 1.5 per cent among the six
-major STs, while it is the lowest
-(1.1 Per cent) among Hajong.
-==Religion==
+. Sectors where industry players have asked for further easing of rules include aviation, defence and pharmaceuticals.
-.Of the total ST population majority 79.8 per cent
+. The government had allowed full FDI in defence after approval; investors can pump in up to 49 per cent through automatic route. For brownfield projects in the pharmaceutical sector, automatic approval had been extended to 74 per cent.
-are Christians and 5.9 per
-cent Hindus. A substantial number of ST population (13.
-Per cent) have been recorded
-under “Other religions and persuasions”. Quite a large
-number (6,324 persons) did not
-mention their faith, and they have been categorized
-under “Religion not stated”. Besides,
-,105 persons have been recorded as Muslims and 2,249 as
-Buddhists constituting 0.7
-per cent and 0.1 per cent respectively.
+. The abolition of the FIPB is expected to facilitate easier capital inflows into India from foreign companies.
-=Mines=
+==Retail, real-estate (100%); MHA security replaced==
-==Illegal coal mining/ 2018==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F11&entity=Ar00130&sk=B16683BB&mode=text  100% FDI Allowed In Single-Brand Retail Under Automatic Route,  January 11, 2018: ''The Times of India'']
-[https://www.thehindu.com/news/national/other-states/in-meghalaya-where-it-took-15-deaths-for-the-reality-of-illegal-mining-to-hit-hard/article25808466.ece  Rahul Karmakar, In Meghalaya, where it took 15 deaths for the reality of illegal mining to hit hard, December 22, 2018: ''The Hindu'']
+[[File: January 2018- What the rules for FDI mean.jpg|January 2018- What the rules for FDI mean <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F11&entity=Ar00130&sk=B16683BB&mode=text  100% FDI Allowed In Single-Brand Retail Under Automatic Route,  January 11, 2018: ''The Times of India'']|frame|500px]]
-An ‘underground economy’ has for long been known to fuel Meghalaya’s politics. It has taken the collapse of a coal mine and – in all probability – the death of at least 15 miners for the reality of illegal mining to hit hard.
+''In reforms push, foreign airlines allowed 49% in AI''
-The accident on December 13, when the miners struck an aquifer leading to the flooding of a 370-foot mine, was the first after the National Green Tribunal (NGT) banned unscientific ‘rat-hole mining’ in the State on April 17, 2014.
+The Union Cabinet unveiled a fresh round of liberalisation of the foreign direct investment (FDI) policy, allowing foreign airlines to invest up to 49% in Air India, and opening up 100% FDI in singlebrand retail under the automatic route. Similarly, 100% FDI has been allowed via the automatic route in real estate broking services.
+Under the existing rules, foreign airlines can invest, with government approval, in Indian companies operating scheduled and non-scheduled air transport services, up to 49% of their paid-up capital. However, this provision was not applicable to Air India, implying that foreign airlines could not invest in the national carrier.
-'''Where is the mine?'''
+===Foreign Cos Cannot Mandate Auditor Of Their Choice===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F12&entity=Ar02701&sk=599AA337&mode=text  Sidhartha, Big 4 audit firms face checks under liberalised FDI policy, January 12, 2018: ''The Times of India'']
-The mine, about 130 km from the capital Shillong, is at Ksan near the river Lytein in the Saipung area of East Jaintia Hills, one of eight mining districts of the State.
-The site is 48 km from where rights and anti-mining activist Agnes Kharshiing was assaulted a month ago for her campaign against illegal mining. East Jaintia Hills has a major share of an estimated coal reserve of 576 million tonnes in the State, which also has substantial deposits of limestone and other minerals. Much of the coal sent out of Meghalaya before the NGT ban was from this district. An assessment by a committee, constituted by the NGT, recorded the highest amount of extracted coal — 3.7 million tonnes of a total 6.5 million tonnes — in the State in September 2014.
+''Foreign Cos Cannot Mandate Auditor Of Their Choice''
+The government has quietly slipped in a swadeshi move while liberalising the foreign direct investment (FDI) rules by mandating that overseas auditors will have to undertake joint audit if an international investor insists on audit by a global firm, or its Indian affiliate.
-'''What prompted the NGT ban?'''
+This marks a major shift in India’s FDI regime, which was earlier silent on the issue and resulted in a situation where the shareholders’ agreement between a foreign investor and its Indian partner contained a clause specifying audit by Big Four firms such as KPMG, Ernst & Young, Deloitte or PricewaterhouseCoopers or Indian firms that are part of their network. The clause has been inserted to prevent this kind of an arrangement and the belief is that one global firm will not agree to a joint audit with an international rival and this will open the doors for standalone Indian firms which have been complaining of being left out. The foreign firms control a majority of the audit work in listed entities as well as large Indian companies, causing a lot of heartburn.
-The NGT ban, retained in 2015, followed a petition filed by the All Dimasa Students’ Union in Assam. The union had cited a study by O.P. Singh of the North Eastern Hill University that said mining in the coal belts and coal stockpiles in the Jaintia Hills areas were polluting rivers and streams flowing down to Assam’s Dima Hasao district, killing aquatic life and rendering the water unfit for drinking or irrigation. Apart from the ecological impact, the NGT observed that “there is umpteen number of cases where by virtue of rat-hole mining, during the rainy season, water flooded into the mining areas resulting in the death of many.” The trigger for the ban was the case of 15 miners trapped fatally inside a flooded mine in the South Garo Hills in July 2012. In between, a Shillong-based NGO filed a public interest litigation petition against illegal coal mining, claiming the rat-hole mines employed 70,000 child labourers. The government later said only 222 children were found working in the mines.
+In fact, a group of Indian chartered accountants had lobbied hard with the government to insist on joint audit for all companies and had pitched for an amendment to the Companies Act. An expert committee headed by former finance secretary Ashok Chawla, however, rejected the proposal as it was seen to be adding to costs but recommended ways to strengthen Indian firms and work towards the development of some large Indian entities.
+“It is a very good move from a corporate governance point of view. Instead of promoting Indian firms, the existing system prevented them from becoming global brands. This government move will help Indian firms,” said S Santhanakrishnan, an expert on corporate governance and law and an independent director on the boards of several large companies and banks.
-'''What is rat-hole mining?'''
+“This move will help create large Indian firms and once international players get a taste of Indian firms, they will find it more worthwhile to work with them,” added Vinod Jain, president and founder of the All India Chartered Accountants Society. Sources, however, said that foreign investors can use another route to overcome the government directive. Instead of inserting a clause in the shareholders’ agreement, they may now get a resolution passed at the annual general meeting, something that is provided under the Companies Act. Jain, however, said that this may be tough to do.
-Coal mining in Meghalaya, financed by businessmen from outside, took off commercially in the 1980s. Since much of the State’s land is community-owned, it was easy for the moneyed locals to purchase land and employ non-tribal labourers to burrow for maximum profit. Rat-hole mining, involving digging of tunnels 3-4 feet high, was the most preferred to strike at narrow coal seams deeper inside the hills.
+=FDI and the Financial Secrecy Index=
+==2016==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Switzerland-still-top-tax-haven-US-jumps-to-03112015001050 ''The Times of India''], Nov 03 2015
+[[File: FDI and Financial Secrecy Index.jpg| Is there a correlation between FD investment in India and the investing country’s rank on the financial secrecy index (FSI)? <br/> Countries such as Switzerland, the US, Singapore and Germany that figure in the top 10 list of FSI-2015 (and are perceived as actively promoting secrecy in global finance) are also among the top 10 FDI investors to India; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=03_11_2015_001_050_002&type=P&artUrl=Switzerland-still-top-tax-haven-US-jumps-to-03112015001050&eid=31808 ''The Times of India''], November 3, 2015|frame|500px]]
-The less dangerous of two methods of digging tunnels is side-cutting on the slopes. The other method entails digging a rectangular pit vertically to a depth of up to 400 metres. Rat-hole-sized tunnels are dug horizontally wherever the coal seams are found for the workers to crawl in and out. The NGT found these techniques unscientific and unsafe for workers.
+Lubna Kably
+'''Switzerland still top tax haven, US jumps to No. 3'''
-'''Why does it continue?'''
+Switzerland has retained its top spot in the financial secrecy index (FSI) 2015, unveiled by the Tax Justice Network (TJN) on Monday . Switzerland is followed by Hong Kong, the US, Singapore and the Cayman Islands. The biggest surprise is the US, which has climbed to third place from sixth place in FSI-2013.
-Many who matter in Meghalaya own a coal mine or are associated with the trade. They include politicians, bureaucrats, police officers and extremists. In 2015, the State government said the ban would cost it ₹600 crore in revenue. The high stakes involved had made political parties promise reopen coal mines during the February Assembly election.
+Countries such as Switzerland, the US, Singapore and Germany that figure in the top 10 list of FSI-2015 (and are perceived as actively promoting secrecy in global finance) are also among the top 10 FDI investors to India.
+TJN's biennial FSI ranking is based on a combination of a country's secrecy score and a scale-weightage based on the country's share in the global market for its offshore financial services. Thus, for instance, even though Mauritius (India's top FDI investor) has a secrecy score of 72, it is ranked lower at 23 as it accounts for less than 1% of the global market for offshore financial services compared to Singapore. India's second largest FDI investor, Singapore, has a lower secrecy score of 69 points but is ranked at fourth position.
+Other top investors in India like the UK, Japan and the Netherlands have an FSI rank of 15, 12 and 41, respectively. Among the notable FDI investors in In dia, countries such as Mauritius, Switzerland and the UAE have a secrecy score of more than 70.
-Chief Minister Conrad Sangma, earlier in denial mode, has admitted after the accident that illegal mining does happen. He has promised appropriate action but at the same time said mining activities are spread across too vast an area to monitor.
+As regards the US, TJN's communication states, “US is more of a cause for concern than any other individual country , because of both the size of its offshore sector and also its rather recalcitrant attitude to international co-operation and reform. Though it has been a pioneer in defending itself from foreign secrecy jurisdictions, aggressively taking on the Swiss banking establishment and setting up its technically quite strong Foreign Account Tax Compliance Act (FATCA), it provides little information in return to other countries.“
+According to tax experts, the FACTA agreement entered into with India provides for reciprocal exchange of information, but it's too early to comment on the information that will be shared by the US.
+Singapore and Germany , which also figure in the top 10 list of FSI-2015, are also among the top 10 investor countries for India. Germany's laxity in tackling illicit money and also in spearheading EU's resistance to public access of country-by-country reporting by multinational corporates has been pointed at.
-Activists are sceptical; on Thursday, an affidavit in the Meghalaya High Court pointed out that the prime accused in the mob attack on Ms. Kharshiing and her associate Amita Sangma was a leader of the ruling National People’s Party and there was no hope of a “meaningful investigation” because of a nexus among the coal mafia, the police and politicians.
+=See also=
+[[Financial Secrecy Index and India]]
-=Wildlife parks and sanctuaries: India=
+[[Foreign currency inflows, outflows: India]]
-LIVING ADVENTUROUSLY
+[[Foreign Direct Investment (FDI): India]]
-HANG GLIDING/PARA GLIDING
+[[Foreign exchange reserves: India]]
-Picturesque Shillong in Meghalaya with its beautiful landscapes is an ideal ground for aero sports, particularly gliding (hang/para gliding).
+[[Foreign Institutional Investment (FII): India]]
-''' TREKS '''
+[[Foreign Portfolio Investors (FPI): India]]
-There has been an increased interest in the many caves located in Meghalaya. There are said to as many as 200 caves which are yet to be mapped or explored. The surveyed caves include five which are the largest in the Indian subcontinent. Major caves are located in the Khasi hills, Jantia hills, South Garo hills.
+[[Private equity investments in India]], this page includes statistics that club '''PE/ VC capital''' together
-=See also=
+[[Venture Capital Funding: India]]
-[[Meghalaya caves]]

Meghalaya, Foreign Direct Investment (FDI): India

Revision as of 06:16, 3 April 2021

Contents

FDI in India: A timeline

1991-2016

2004-16: FDI inflows into India

2011-16

2011-18

2014-19

2017: inflows decreased 9%, outflows doubled

3% growth in FDI slowest in four years

2016

India: World's top greenfield FDI destination

Defence

Pharma

India at Global level

Retail

2017-Mar 2018, FDI inflow, state-wise

2019-20: 18% growth

2020

Foreign companies registered in India

Amount invested

FDI by G20 nations: 2000-15

60% increase, Oct 2014-Sept 2016

Private Equity (PE) investments: 2014, 2015

Confusion over Financial Times figures

2013-19

Countries that invest most in India

2000-19

2020

India’s share in global FDI

2014: India no.9 in the world

2015: India no. 1 destination

2016: India was among Top 15, but got 2% of global FDI

FDI confidence: India 8th in 2017, 11th in 2018

2017: India moved to top 10 FDI-hosts

2017: 11% dip in FDI for India

2018: India, 5th most attractive investment destination

2018: India overtakes China

Regions that attract the most FDI

2017> 19: Top regions, sectors

Rules, changes in

November 2015: Rules changed for 15 sectors

2016: Liberalised FDI rules

2016: Abolition of Foreign Investment Promotion Board (FIPB)

Retail, real-estate (100%); MHA security replaced

Foreign Cos Cannot Mandate Auditor Of Their Choice

FDI and the Financial Secrecy Index

2016

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2018: India, 5^th most attractive investment destination