FDI touches $4.5 b

By Our Special Correspondent

NEW DELHI, FEB. 16. Actual inflows of foreign direct investment have reached nearly $4.5 billion in the year 2000, an increase of 14.67 per cent over the previous year's inflow of $4 billion.

According to the Union Commerce and Industry Ministry, the last two years have shown a significant step up in the inflow-approval ratio. The current realisation rate of FDI into the country is around 52 per cent. This maintains the trend set in 1999. The amount of FDI approved in 2000 stood at $8.6 billion as against $6.7 billion in 1999, an increase of 30.57 per cent.

Referring to the FDI performance at the Parliamentary Consultative Committee attached to his Ministry, the Commerce and Industry Minister, Mr. Murasoli Maran, said the institutional mechanism of the Foreign Investment Implementation Authority (FIIA) set up in 1999 to provide a single point interface between foreign investors and the government machinery both at the Central and State levels were yielding positive results.

The sectoral composition of FDI approvals show that the proposals focus on core and infrastructure sectors as well as information technology.

The top ten sectors that have attracted FDI are fuels including oil and refinery, telecom, electrical equipment, computer software and electronics, tramsportation industry, services sector, metallurgical industry, chemicals, food processing, hotels and tourism and textiles.

The cumulative FDI flows and approvals into the country from 1991 to 2000 are now estimated at $23.6 billion and $68.3 billion respectively, an official release says.

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Section  : Business
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