FDI Inflows in India - Sectoral Analysis of Top 10 Sectors

 Sector-wise FDI Inflows in India from April 2010-Dec

2010

Table 2 Sector–wise FDI Inflows (Rupees in Crores)

Sector 2007-08 2008-09 2009-10 2010-11 Cumulative % age to
(April- (April- (April- (for April- Inflows Total
March) March) March) ‘10) (April ’00 - Inflows
April ‘10) (In terms
of US$)

Services Sector 26,589 28,411 28,411 1,581 106,992 21 %

(financial & nonfinancial
Computer Software & 5,623 7,329 4,350 765 44,611 9%
Hardware 5
Telecommunications 5,103 11,727- 12,338 1,914 42,620 8%
(radio paging,
cellular mobile, basic
telephone
services)
Housing & Real Estate 8,749 12,621 13,586 246 37,615 7%
Construction Activities 6,989 6,989 13,544 345 36,066 7%
(including
roads & highways)
Power 3,875 4,382 6,908 547 21,466 4%
Automobile Industry 2,697 5,212 5,609 187 20,864 4%
Metallurgical 4,686 4,157 1,935 404 13,845 3%
Industries
Petroleum & Natural 5,729 1,931 1,328 522 12,026 2%
Gas
Chemicals (other than 920 3,427 1,707 115 11,390 2%
fertilizers)
 Ranking of Sector wise FDI inflows in India since April 2000-
Dec 2010
Industrial Sector Rank
Service Sector 1
Computer Hardware & Software 2
Telecommunication 3
Housing and Real Estate 4
Construction Activities 5
Power 6
Automobile Industry 7
Metallurgical Industry 8
Petroleum and Natural Gas 9
Chemicals 10
Source Fact Sheets on FDI

Growth of Services Sector in India (In Percent)

Year Trade, Hotel, Finance, Community, Total
Transport and Insurance Social and Service
Communication and Real Personal GDP
Estate Service
2001-02 9.2 7.3 3.9 7.1
2002-03 9.1 8.0 3.8 7.3
2003-04 12.0 4.5 5.4 8.2
2004-05 10.6 9.2 9.2 9.9
2005-06 11.5 9.7 7.8 10.0

FDI and Economic Growth

The IMF definition of FDI includes as many as twelve different elements-equity capital,
reinvested earnings of foreign companies, inter company debt transactions, short‐term and long-
term loans, financial leasing, trade credits, grants, bonds, non-cash acquisition of equity,
investment made by foreign venture capital investors, earnings data of indirectly-held FDI
enterprises, control premium and non-competition fee. India, however, does not adopt any other
element other than equity capital reported on the basis of issue or transfer of equity or preference
shares to foreign direct investors. Figure - 01 exploring the process how FDI is important in
utilizing of our economic resources and generating the employment in country as well as
important for creating economic prosperity.
Figure – 01
Link Model: FDI and Economic Grow