Foreign Direct Investment



Foreign Direct Investment 
Year-wise details of the proposals for Foreign Direct Investment (FDI) received during the last three years and the current year are as under:


Year
No. of fresh proposals received*
2012
218
2013
219
2014
150
2015
170

The details of the proposals approved/ rejected during the last year and the current year are as under:

Year
Proposals approved*
Proposals rejected
2012
199
80
2013
198
33
2014
225
40
2015 (till date)
85
31
Top 10 country-wise FDI equity inflows and top 10 sector-wise FDI equity inflows from April 2012 to May 2015 are as below:
STATEMENT ON TOP 10 COUNTRY-WISE FDI EQUITY INFLOWS
FROM APRIL 2012 TO MAY 2015
(Amount in US$ million)
S.No
Name of the Country
Amount of Foreign Direct Investment Inflows
%age with Inflows
1
Mauritius
25,072.06
29.46
2
Singapore
17,936.59
21.08
3
Netherlands
8,148.82
9.57
4
Japan
6,333.99
7.44
5
United Kingdom
5,796.28
6.81
6
U.S.A
3,738.66
4.39
7
Germany
3,534.23
4.15
8
France
1,680.22
1.97
9
Cyprus
1,665.74
1.96
10
Switzerland
1,014.62
1.19


STATEMENT ON TOP 10 SECTOR-WISE FDI EQUITY INFLOWS
From APRIL 2012 TO MAY 2015
(Amount in US$ million)
S.No
Sector
Amount of FDI Inflows
%age of Total Inflows
1
SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other)
10,800.73
12.69
2
AUTOMOBILE INDUSTRY
6,631.92
7.79
3
COMPUTER SOFTWARE & HARDWARE
6,085.56
7.15
4
TRADING
5,485.99
6.45
5
FOOD PROCESSING INDUSTRIES
4,960.22
5.83
6
TELECOMMUNICATIONS
4,869.59
5.72
7
HOTEL & TOURISM
4,701.79
5.52
8
DRUGS & PHARMACEUTICALS
4,084.82
4.80
9
CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects
3,318.32
3.90
10
METALLURGICAL INDUSTRIES
2,579.69
3.03

E-Filing of FDI proposal is a continuous process and proposal are placed before the FIPB only after completion of all the paper works.
        
 In the light of the importance of foreign direct investments for economic growth and development, the government announced key FDI reforms in the defence and railways sectors. The entire range of rail infrastructure was opened to 100% FDI under the automatic route, and in defence, sectoral cap was raised to 49%. To boost infrastructure creation and to bring pragmatism in the policy, the Government reviewed the FDI policy in the construction development sector also by creating easy exit norms, rationalizing area restrictions and providing due emphasis to affordable housing.

          To give impetus to the medical devices sector, a carve out was created in FDI policy on the pharmaceutical sector and now 100% FDI under automatic route is permitted. The Government, in order to expand insurance cover to its large population and to provide required capital to insurance companies, raised the FDI limit in the sector to 49%. Pension sector has also been opened to foreign direct investment up to the same limit. The FDI policy provisions pertaining to NRI investment have also been clarified by providing that for the purposes of FDI policy, investment by NRIs on non-repatriation basis under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will be deemed to be domestic investment at par with the investment made by residents. 

          These measures are expected to increase FDI, which complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into increased production, export and employment generation of the country. Further, as FDI is largely a matter of private business decisions, global investors normally take time to assess a new policy and its implications in the context of a particular market before making investment.

          Review of Foreign Direct Investment (FDI) policy is an ongoing process. Significant changes are made in the FDI policy regime from time to time to ensure that India remains increasingly attractive and investor-friendly.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.
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Steps to contain prices of essential food items 

The government has taken a number of steps to improve the availability and to contain prices of essential food items which include:

·         Minimum Export Price (MEP) for onion has been raised from USD 250 per M.T to USD 425 per MT w.e.f. 26.6.2015.

·          The stock limits in respect of onion has extended by one more year i.e. up to 2nd July 2016 under the Essential Commodities Act.

·         Export of all pulses is banned except kabuli channa and up to 10,000MTs in organic pulses and lentils. Zero import duty on pulses has been extended till 30th September, 2015.

·         Export of edible oils in bulk is prohibited except coconut oil and other edible oil in branded consumer packs of up to 5kgs is permitted with a minimum export price of USD 900 per MT w.e.f. 6.2.2015.

·         States have been advised to allow free movement of fruits and vegetables by delisting them from the APMC Act.

·         A new Plan Scheme titled Price Stabilization Fund (PSF) with a corpus of Rs.500 crores approved aimed at regulating price volatility of agricultural and horticultural commodities. Under the scheme a decision has been taken to augment the domestic supply of pulses by importing 5000MT of Arhar.

·         States have been advised to exempt levy of market fee on fruits and vegetables and to allow establishment of “Kisan Mandis”/ Farmers markets where producers and Farmer Producer Organizations (FPOs) can directly market their produce to wholesalers, organized retailers and ordinary consumers.

·         Government is also encouraging production of horticultural crops through a Centrally Sponsored scheme, namely Mission for integrated Development of Horticulture w.e.f 2014-15.

·         Advisory to State Governments issued to take strict action against hoarding & black marketing     and effectively enforce the Essential Commodities Act, 1955 & the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980.

·         Rice and wheat is being released into the open market from the central pool stock over and above the buffer norm.

·         The joint action plan following the consultation meeting held on  7th  July 2015  with States/UTs inter-alia agreed to identify vulnerable areas where supply shortages occur and ensure that stock out situation do not occur for items of common consumption and also review of APMC Act with reference to onion, potatoes and tomatoes to remove inter-State barriers to internal trade.


This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Rajya Sabha today.

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NCJ/NN






ANNEXURE-II



STATEMENT REFERRED IN REPLY TO PART (c) OF RAJYA SABHA UNSTARRED QUESTION NO.581 FOR 24.07.2015 REGARDING RISE IN PRICES OF PULSES

All-India Daily Average Retail Prices of 5 Major Pulses (Rs/kg)

Major
 Pulses
20.07.2015
(Latest)
18.07.2014
(1 year ago)
% Variation over 1 Year
Moong dal
98.47
87.43
12.63
Urad dal
99.03
73.69
34.39
Arhar dal
99.31
70.57
40.73
Masoor dal
82.53
67.16
22.89
Chana dal
60.29
46.19
30.53
Source:- States/UTs Civil Supplies Deptts.

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Press Note 

The media has widely reported today dated 24.07.2015 on the answer of the Department of Agriculture & Cooperation laid on the table of the Rajya Sabha.  This was the answer to Starred Question No. 53 raised by Shri C. P. Narayanan, Hon’ble Member of Parliament on the subject of “suicide by farmers”.

The department considers the issue of suicide by farmers with great sensitivity and deals it with all the seriousness it deserves.  While answering on such an important issue particularly on the floor of the House, the department considers that it is necessary to provide truthful information collated from different sources so as to enable an informed discussion on the subject.  So far as the data on suicide by farmers is concerned, the department has always been relying upon two following sources:

i)                    The annual reports of the National Crime Record Bureau (NCRB)
ii)                  The data reported by the State Governments

It is generally seen, that all the States do not report the data in time and, therefore, the department is compelled to show as ‘not reported’ (NR) against various States.  Hence, the NCRB data also is submitted as part of the answer along with that reported by the State Governments.

The NCRB reports suicides by different categories of people profiled by their professions.  One of the professions on which suicide data is provided for the calendar year i.e. January-December is listed as persons ‘self employed in farming/agriculture’.  Further, this category is itemized by specific sub-categories under which the reported suicide has occurred.  The categories normally reported by NCRB under the head suicides by the self-employed in the farming/agriculture category are:

i)                    Family problems, illness, drug abuse/addiction, unemployment, property dispute, professional/career problems, love affairs, bareness/impotency, cancellation/non-settlement of marriage, dowry disputes, fall in social reputation and unknown causes. 
ii)                  In fact, NCRB also  indicates percentage of suicides under each of these categories.

            In the answer of the Department to the Starred Question No. 53 under reference the Department has submitted state-wise details of suicides by the farmers for the years 2012, 2013 and 2014, as reported by NCRB and also by the State Governments in two separate annexures.  Further, in case of reports by the State Governments, the number of suicides up to June 2015 has also been provided.  The comparable figure by NCRB have not been reported since the annual report is not available. 

            Apart from reporting the factual data based on these two reports, the department in its reply has also said that ‘causes of suicides by farmers due to agrarian reasons, inter-alia, include indebtedness, crop failure, drought, etc.’ 

            As seen thus, it was not the intention of the Hon’ble Minister Agriculture to attribute the causes of farmers’ suicide to issues like love affair etc.  It has been taken out of context and is being highlighted in an unwarranted manner.

            The Government is extremely concerned about the issue of farmers’ suicide and has rolled out large number of programmes that will go to reduce the cost of cultivation and simultaneously increase the per hectare yield.  Various studies have shown, that one of the reasons for agrarian crisis leading to farmers suicide is high cost of cultivation.  It is in this connection, that the department has specifically rolled out the Soil Health Management (SHM) Scheme under which two important interventions of the government are:

i)                    Soil Health Card
ii)                  Paramparagat Krishi Vikas Yojana (PKVY)

It is for the first time, that every farmer in the country will be issued SHC which will indicate the status of his soil in terms of 12 parameters and will also be given an advice on the various fertilizers and other soil amendments he is suppose to make.  The effort will ensure that farmers do not spend money unnecessarily on purchase of fertilizers by adding more than required.  Once there is economy on the use of chemical fertilizers, the cost of production will automatically decrease.  Further, the Government is going to give SHC to every farmer once in every cycle of 3 years.  As many as 14 crore farmers will benefit in each of the cycle of 3 years. The soil test based fertilizer usage will ensure higher yields per unit. 

This is further being supplemented by Government’s decision to produce locally neem coated urea on a 100% basis.  Indigenous manufacture of fertilizers accounts for 75% of urea usage in the country and thus major part of urea requirement will be neem coated.  According to Scientists, there will be saving of 10% on the usage, which will be a direct cost saving to the farmers. 

Another component is PKVY, under which the government would be promoting organic farming on a cluster basis.  This will also reduce the cost of cultivation while simultaneously increasing the per hectare yield particularly in the rainfed & hilly areas of the country.  The unique feature is, that it is decentralized and participatory in nature, apart from being cluster based.

So far as post production intervention is concerned, the government has rolled out ‘Unified Agriculture Market’ as a strategy to transfer remunerative prices to the farmers.  When fully implemented, it will improve market efficiency and ensure that farmers’ incomes increase.  In addition to it, the government is working on a comprehensive crop insurance.

These programmes, among many others that the department has rolled out, will improve the farmers’ situation by firstly, reducing his cost of cultivation and secondly transferring him optimal prices on his produce.  This is the right strategy to improve farm sector.

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'Make in India' Programme 



The ‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. The ‘Make in India’ initiative does not target manufacturing sector alone, but also aims at promoting entrepreneurship in the country. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset. The following  25 sectors have been identified under the ‘Make in India’ initiative :

1.      Auto Components
2.      Automobiles
3.      Aviation
4.      Biotechnology
5.      Chemicals
6.      Construction
7.      Defence Manufacturing
8.      Electrical Machinery
9.      Electronic System Design and Manufacturing
10.  Food  Processing
11.  IT and BPM
12.  Leather
13.  Media and Entertainment
14.  Mining
15.  Oil and Gas
16.  Pharmaceuticals
17.  Ports
18.  Railways
19.  Roads and Highways
20.  Renewable Energy
21.  Space
22.  Textiles
23.  Thermal Power
24.  Tourism and Hospitality
25.  Wellness




After the launch of ‘Make in India’ initiative in September 2014 there is 48 percent increase in FDI equity inflows during October 2014 to April 2015 over the corresponding period last year. A positive response has been received from within the country and globally for the ‘Make in India’ initiative. The Investor Facilitation cell in Invest India has received more than 12000 queries on its portal since the campaign began. Several countries such as Japan, China, France and South Korea have announced their intention to make huge investments in India in various industrial and infrastructure projects. 

            An Expert Committee has been constituted to examine the possibility of replacing multiple prior permissions and pre-existing regulatory mechanism and to prepare a draft legislation.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

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Steps to increase the liquidity of the sugar mills enabling them to clear cane dues 


                         The Central Government has taken the following steps to increase the liquidity of the sugar mills enabling them to clear cane dues of the sugarcane farmers in the country:-

·         Extended financial assistance to the sugar mills in the form of interest free loan of Rs. 6600 crore through banks (SEFASU 2014), for sugar season   2013-14.

·         Providing incentive for production and  export of raw sugar during the sugar seasons 2013-14 and  2014-15.

·         Extending soft loan of Rs. 6000 crore from banks with interest subvention and moratorium for one year for sugar season  2014-15.

·         Smoothened the supply chain procedure   for EBP and fixed its remunerative price.

·         Waived excise duty on ethanol to be supplied for EBP in 2015-16 sugar season.

·         Import Duty increased from 25% to 40%.

·         Processing time under Advance Authorization Scheme reduced from 18 months to 6 months.

·         The “Duty Free Import Authorization” scheme (DFIA) for sugar withdrawn to prevent possible leakages.
            These mentioned initiatives seek to mitigate liquidity crisis of the sugar industry and enable it to make timely payment of cane dues of the farmers. No additional funds have been earmarked for this purpose. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Rajya Sabha today.

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Procurement of Crops from Backward and Tribal Areas 

The Central Government has taken a number of steps for providing remunerative prices to farmers including backward and tribal areas for their crops which are as follows:-

Keeping in view the procurement potential areas, procurement centres for MSP operations are opened by Government agencies, both FCI and State Government, after mutual consultations.
Farmers are made aware of the MSP operations by way of advertisements like displaying banners, pamphlets, announcement for MSP and specification in print and electronic media.
Payment for the wheat and paddy procured from farmers is either made directly to the farmers or through arthias/co-operative societies as per prevailing system of the State. Payment to farmers are also made through A/c payee cheque/electronic mode. Even in respect of paddy purchased by millers, GOI has already advised State Government to ensure payment to farmers by millers/Pvt traders through A/c payee cheque so that trail of payment can be made while issuing MSP certificate to millers for delivery of levy rice to State Government /FCI.
State Governments are encouraged to undertake decentralized procurement, so as to enhance the procurement of food grains.
 MSP has been enhanced from time to time to encourage delivery of foodgrains into central pool purchase.
This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Rajya Sabha today.

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