Phase I Phase II Phase III Phase IV Phase V

1950-67 1967 -1980 1980-1990 1990-Onwards 2014 Onwards

Receptive Restrictions Pro-business Open door policy Open door policy and promotion of selective
Attitude approach: sectors of National
gradual Interest
liberalization

Nondiscriminatory Restrictions on Export oriented Liberalized policy Promoting FDI selectively in several
treatment to FDI without units framework for sectors.
FDI technology. allowed higher foreign trade, Focus on FDI for job creation and domestic
FDI foreign manufacturing.
No restrictions More than 40 exchange and Raising FDI in defense sector from 26
on remittances Percent not Liberalization in technical percent to 49 percent. Full Indian
allowed. the procedure of collaborations. Management and control through FIPB
Indians having remittance and Core and route.
ownership and FDI controlled royalty infrastructure Development of smart cities and reduction
control by FERA in technical fees. sectors: FDI was in FDI from 50,000 square meters to 20,000
(foreign welcomed square meters with a three year post
exchange Faster channels FERA replaced completion lock in.
regulation act) for with FDI in manufacturing through automatic
FDI clearance FEMA (Foreign route. Manufacturers allowed to sell through
created. exchange retail including e commerce platforms.
management act). Rising for FDI in the insurance sector from
It was not necessary 26 % to 49 %., Civil aviation raised from 74
for FDI to be % to 100 %. FII/FPI allowed to invest in
accompanied with Power exchanges through primary market.
technology. Overseas investment up to 49% in the
FDI was insurance and pension sectors under the
encouraged automatic route.
through mergers 100% FDI in asset reconstruction companies
and acquisitions in through the automatic route. Construction
services and development eligible for 100 % FDI under
financial sector, the automatic route.
non-banking
financial Limit for investment by foreign portfolio
companies and investors (FPIs) in central public sector
insurance, etc. enterprises, other than banks, listed in stock
exchanges raised from 24 % to 49 %.

Investment limit for foreign entities in

Indian stock exchanges will be enhanced
from 5% to 15%

S. FinancialY Equity Re-invested Other Total %age

 N ear FIPB Route/ EquityCapital Earnings Capital FDI Growth
o. (April- RBI’s Automatic Of + + Inflows over
March) Route/ Acquisition Unincorpora Previous
Route ed Bodies Year

1. 2000-01 2,339 61 1,350 279 4 029 –

2. 2001-02 3,904 191 1,645 390 6,130 (+) 52 %
3. 2002-03 2,574 190 1,833 438 5,035 (-) 18 %
4. 2003-04 2,197 32 1,460 633 4,322 (-) 14 %
5. 2004-05 3,250 528 1,904 369 6,051 (+) 40 %
6. 2005-06 5,540 435 2,760 226 8,961 (+) 48 %
7. 2006-07 15,585 896 5,828 517 22,826 (+) 155 %
8. 2007-08 24,573 2,291 7,679 300 34,843 (+) 53 %
9. 2008-09 31,364 702 9,030 777 41,873 (+) 20 %
10 2009-10 25,606 1,540 8,668 1,931 37,745 (-) 10 %
.
11 2010-11 21,376 874 11,939 658 34,847 (-) 08 %
.
12 2011-12 34,833 1,022 8,206 2,495 46,556 (+) 34 %
.
13 2012-13 21,825 1,059 9,880 1,534 34,298 (-) 26 %
.
14 2013-14 24,299 975 8,978 1,794 36,046 (+) 5 %
.
15 2014-15 30,933 978 9,988 3,249 45,148 (+) 25 %
.
16 2015-16 40,001 1,111 10,413 4,034 55,559 (+) 23 %
.
17 2016-17(P) 43,478 1,223 12,343 3,176 60,220 (+) 8 %
.
18 2017-18 44,857 664 12,542 2911 60,974 (+) 1 %
.
19 2018-19 44,366 693 13,570 5,746 64.375 (+) 6 %
.
Cumulative 422,900 15,465 140,016 31,457 609,838 _
Total
(from April
2020 to March
2019 )
Table no. 2-FDI Inflows in the Country during the Financial Years from 2000-01 to 2019-20
Value in USD Million
Source: Reserve Bank of India (RBI) bulletins and DIPP (Department of Industrial policy
and promotion)

Table No-3 SECTORS ATTRACTING HIGHEST FDI EQUITY INFLOWS

Rank Sector 2017-18 2018-19 2019-20 Cumulative % age to
(April – (April – (April – Inflows total
s
March) March) March) (April, 00 - Inflows (In
 March, 20) terms of
US$)
1 SERVICES SECTOR ** 43,249 63,909 55,429 471,730 17%
(6,709) (9,158) (7,854) (82,003)
2 COMPUTER SOFTWARE & 39,670 45,297 54,250 276,006 10%
HARDWARE (6,153) (6,415) (7,673) (44,911)
3 TELECOMMUNICATIONS 39,748 18,337 30,940 219,189 8%
(6,212) (2,668) (4,445) (37,271)
4 TRADING 28,078 30,963 32,406 176,005 6%
(4,348) (4,462) (4,574) (27,595)
5 CONSTRUCTION 3,472 (540) 1,503 4,350 129,964 5%
DEVELOPMENT: Townships, (213) (617) (25,662)
housing, built-up infrastructure
and construction development
projects
6 AUTOMOBILE INDUSTRY 13,461 18,309 19,753 143,742 5%
(2,090) (2,623) (2,824) (24,211)
7 CHEMICALS (OTHER THAN 8,425 13,685 7,492 98,554 4%
FERTILIZERS) (1,308) (1,981) (1,058) (17,639)
8 CONSTRUCTION 17,571 15,927 14,510 108,383 4%
(INFRASTRUCTURE) (2,730) (2,258) (2,042) (16,847)
ACTIVITIES
9 DRUGS & 6,502 1,842 3,650 87,814 4%
PHARMACEUTICALS (1,010) (266) (518) (16,501)
10 HOTEL & TOURISM 7,279 7,590 21,060 91,779 3%
(1,132) (1,076) (2,938) (15,289)
** Services sector includes Financial, Banking, Insurance, Non-Financial / Business,
Outsourcing, R&D, Courier, Tech. Testing and Analysis (Source: D.I.P.P.)