BackIndia received over $300 billion FDI since 2000, says government
A bulk of FDI came in the past decade, says the government
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New Delhi: India has received a little more than $300 billion in foreign direct investment (FDI) since 2000, a bulk of it coming in the past decade, the government said on Wednesday.
Between 1999 and 2004, India received $19.52 billion of foreign investment, which increased to $114.55 billion between 2004 and 2009, and further to $172.82 billion between 2009 and September 2013, the commerce ministry said in a statement.
The Congress-led United Progressive Alliance (UPA) has been in government over two consecutive terms since 2004.
In a separate report, the United Nations said FDI flows into India grew 17% in 2013 to $28 billion despite unexpected capital outflows in the middle of the year. It also said FDI across the world last year rose to levels not seen since the start of the global economic crisis in 2008, according to the Press Trust of India (PTI), which cited the UN Conference on Trade and Development (UNCTAD) report.
India ranked 16th among the top 20 global economies in terms of foreign investments. Global FDI increased by 11% in 2013 to an estimated $1.46 trillion.
India’s quest to increase FDI inflows have, however, suffered several roadblocks, especially from political opposition to foreign investment in supermarkets.
The government in late 2012 won parliamentary approval for its multi-brand retail FDI policy, but this includes clauses giving state governments the final say in allowing such investments, worrying potential investors.
As a result, only a few foreign retailers have so far showed up with significant investments. British supermarket chain Tesco Plc. last month received approval from India’s Foreign Investment Promotion Board (FIPB) for its proposal to invest $110 million for a 50% stake in Tata group’s Trent Hypermarket Ltd.
Other foreign retail firms are waiting for greater clarity on the FDI policy to emerge after the general election, which is expected to take place in April-May.
Wal-Mart Stores Inc., the world’s biggest retailer, has registered a new company called War-Mart India Pvt. Ltd as it prepares to re-enter the country with a new partner, according to a PTI report. Wal-Mart ended its partnership with Bharti Enterprises in late 2013.
As for single brand retail, in which the government has allowed 100% direct entry, the outcome has been more encouraging. Swedish home furniture chain IKEA Systems B.V. promised an investment of ₹ 10,000 crore to set up large format retail stores in the country, making it the largest investor in single brand retailing in India. Fast fashion label H&M will be investing ₹ 700 crore to open 50 stores in India.
PTI contributed to this story.
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