FDI highest in telecom, declines in transport

DEC 3: There has been a sharp decline in FDI investment in the transport sector which had occupied top slot last year.FDI inflow in the te...

DEC 3: There has been a sharp decline in FDI investment in the transport sector which had occupied top slot last year.

FDI inflow in the telecommunications sector last year accounted for a mere 2.27 per cent of the total amount approved with proposals worth Rs 247.53 crore while the transportation sector had received investments totalling Rs 3000 crore during the same period.

A sector-wise break-up of the FDI and technical collaboration approved during the first six months of the current fiscal indicates that investments in sectors like telecommunications and drugs

and pharmaceuticals have increased while FDI inflows in textiles, chemicals and the services sector have declined.

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FDI inflows in the textile sector has declined from around Rs 227.81 crore during April-October 1999-2000 to Rs 126.94 crore which accounts for less than one per cent of the total inflows.

Similarly, FDI inflows in the chemical sector declined by almost half at Rs 210 crore in the first six months this fiscal accounting for 0.89 per cent of the total from around Rs 552.90 crore last year.

The hotel and tourism sector was another sector which witnessed a sharp decline in the FDI inflows from Rs 716 crore last year to around Rs 278 crore during the first six months of the current fiscal.

Other sectors like the consultancy services, vegetable oils and vanaspati witnessed decline in FDI inflows while sectors like electrical equipment saw a surge in FDI inflows from Rs 1617.87 crore during the first six months in 1999-2000 to around six times the investment this fiscal at Rs 6,677,60 crore accounting for around 28.20 per cent of the total FDI approved.

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Sources said that a total number of 922 proposals envisaging FDI of Rs 23,679.35 crore during April-October this year were received and approved by the Foreign Investment Promotion Board (FIPB) as against 881 proposals envisaging FDI of Rs 10,926.59 crore during the same period last year.

A total inflow of Rs 10,535.81 crore was recieved duringthe period as against total inflow of Rs 5212.07 crore in the corresponding period last year.

The state-wise break-up of the FDI inflows indicatesthat while Maharashtra recieved the highest number of FDI cases at 1873, Madhya Pradesh recieved the highest amount at Rs. 9,247.53 crore followed by Maharashtra with FDI worth Rs. 4,979,04 crore. Andhra Pradesh which has 163 FDI cases under implementation has recieved a total of Rs. 1,686.84 crore as FDI inlfow while inflow in Tamil Nadu and Himachal Pradesh was nil