Foreign Direct Investment
Foreign Direct Investment
The year-wise details of the proposals received during the last three years and the current year are as under:
The details of the proposals approved/ rejected during the last three years and the current year are as under:
Proposal-wise actual FDI inflows and its utilization in various sectors and State/Union Territory are not maintained centrally.
Investment by foreign companies in the country is guided by the FDI policy. FDI in the country is permitted subject to, applicable laws/regulations; security and other conditionalities. FDI brings much needed capital, technology and global best practices to the investee Indian companies.
Filing of FDI proposals is continuous process and proposals for investment are placed before the FIPP only after completion of all the mandatory paper work.
FDI proposals can be made for investment in any State of the country. Foreign Investment Promotion Board (FIPB) considers these proposals on case to case basis. FIPB has not banned investment from any company in the country.
Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities including investments from Non-Resident Indians (NRIs). Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to making it more investor friendly, including for NRIs. Significant changes in the FDI policy regime have been made in the recent past in certain sectors namely Railway infrastructure, construction development, defence, medical devices & insurance, to provide further openings for FDI in India.
Further, the extant FDI policy allows special dispensation for NRI investments in the construction development sector, Scheduled Air Transport Services, Domestic Scheduled Passenger Airlines, Non-Scheduled Air Transport Services, Non-Scheduled airlines, Chartered airlines, and Cargo airlines.
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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India’s Foreign Trade (Merchandise): February, 2015
EXPORTS (including re-exports)
Exports during February, 2015 were valued at US $ 21545.33 million (Rs.133662.08 crore) which was 15.02 per cent lower in Dollar terms (15.28 per cent lower in Rupee terms) than the level of US $ 25353.24 million (Rs. 157769.13 crore) during February, 2014. Cumulative value of exports for the period April-February 2014-15 was US $ 286582.71 million (Rs 1747451.32 crore) as against US $ 284074.69 million (Rs 1719888.25 crore) registering a growth of 0.88 per cent in Dollar terms and growth of 1.60 per cent in Rupee terms over the same period last year.
IMPORTS
Imports during February, 2015 were valued at US $ 28392.32 million (Rs.176139.17 crore) which was 15.66 per cent lower in Dollar terms and 15.92 per cent lower in Rupee terms over the level of imports valued at US $ 33665.55 million (Rs. 209495.33 crore) in February, 2014. Cumulative value of imports for the period April-February 2014-15 was US $ 411803.65 million (Rs 2510824.23 crore) as against US $ 408919.22 million (Rs 2463480.16 crore) registering a growth of 0.71 per cent in Dollar terms and growth of 1.92 per cent in Rupee terms over the same period last year.
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during February, 2015 were valued at US $ 6101.23 million which was 55.49 per cent lower than oil imports valued at US $ 13706.89 million in the corresponding period last year. Oil imports during April-February, 2014-15 were valued at US $ 130848.36 million which was 12.24 per cent lower than the oil imports of US $ 149103.21 million in the corresponding period last year.
Non-oil imports during February, 2015 were estimated at US $ 22291.09 million which was 11.69 per cent higher than non-oil imports of US $ 19958.66 million in February, 2014. Non-oil imports during April-February, 2014-15 were valued at US $ 280955.29 million which was 8.14 per cent higher than the level of such imports valued at US $ 259816.01 million in April-February, 2013-14.
TRADE BALANCE
The trade deficit for April-February, 2014-15 was estimated at US $ 125220.94 million which was higher than the deficit of US $ 124844.53 million during April-February, 2013-14.
INDIA’S FOREIGN TRADE (SERVICES): JANUARY, 2015
(As per the RBI Press Release dated 13th March, 2015)
A. EXPORTS (Receipts)
Exports during January, 2015 were valued at US $ 14250 Million (Rs. 88671.91 Crore).
B. IMPORTS (Payments)
Imports during January, 2015 were valued at US $ 7788 Million (Rs. 48461.53 Crore).
C. TRADE BALANCE
The trade balance in Services (i.e. net exports of Services) for January, 2015 was estimated at US $ 6462 Million.
For quick estimates for selected major commodities for February 2015, click here.
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Persons Engaged in Cultivation of Rubber, Tea/Coffee
Estimated number of persons engaged in cultivation of rubber, tea and coffee is as under:
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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Prohibition/Ban on Import of Fruits/Vegetables
Temporary ban/restriction is imposed by importing countries from time to time for non compliance of their rules/regulations/standards by exporters. The European Union (EU) had prohibited import from India of Indian mangoes and four other vegetables viz. Tarro Plant (Arbi- except root and seed), brinjal, snake gourd and bitter gourd, effective from 01st May, 2014 on account of interceptions of export consignments not compliant with EU Phytosanitary regulations. Similarly, Saudi Arabia had also imposed a temporary ban on import of green pepper from India due to the presence of pesticides residue in green pepper.
India’s exports of fresh fruits & vegetables during 2014-15 (Apr. – Jan.) have fallen by 14.02% in USD terms as compared to exports during the corresponding period of 2013-14. However, the decline cannot be attributed entirely to the restrictions imposed by certain countries as exports of agricultural commodities including fruits and vegetables depends on several factors such as international demand and supply situation, exportable surplus availability in the country, international and domestic price situation etc.
European Union banned import of fruits/vegetables including mangoes from India with effect from April 2014. India had taken up this issue with EC at every possible forum. A FVO mission from EC visited India in Sept. 2014 to inspect the improved official control put in place by India for export of mangoes to EU. For improving official control for export of mangoes to Europe, a Standard Operating Procedure (SOP) has been developed by the Government for pest free export of fruits to EU wherein fruits are proposed in pack houses approved by APEDA under the supervision of Plant Quarantine before export to EU. FVO Mission have given affirmative report on improved official control system for export of mangoes from India to EU and consequently the European Commission has lifted the ban on import of Indian mango w.e.f. 12.02.2015.
In order to resume export of green pepper to Saudi Arabia, Agricultural and Processed Food Products Export Development Authority (APEDA) has put in place the following system for meeting their required standards:
i) APEDA has approved 31 laboratories for testing of residue in food products.
ii) Test report generated by the laboratories will be a pre-requisite for the issue of phytosanitary certificate.
iii) APEDA recognized pack houses which has system in place to verify the traceability of the product will be used for packing and exporting of green chillies.
iv) APEDA has identified vegetable cluster including that of green chillies, wherein GAP certified farmers are being identified for sourcing material for export.
APEDA in association with State Governments has been organising awarness/sensitisation programe for exporter and other stake-holders to improve the production of export quality fruits and vegetable.
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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Export of Sugar
Due to record production of sugar in major sugar producing countries like Brazil, Thailand and India in the market year 2012-13 and 2013-14 coupled with fall in commodity prices of agriculture goods and crude oil the international prices of sugar are depressed thereby making export of sugar from India unviable. The export data for sugar for the last 2 years and the current year (sugar season Oct. 14 to Dec. 14) is as under:-
ITCHS: 1701 and 170290
Apr. 14-Dec. 14 figures are provisional
The cost of sugar production depends upon a number of factor like cost and quality of raw material mainly sugarcane, conversion cost, efficiency of plant and Machinery etc. The cost of such inputs varies from country to country. Besides, in Brazil, the mill owner have major share of their own land holdings for cultivating sugarcane whereas in India cane is grown and supplied to mill by Indian farmers having small land holdings. The policy of cane pricing in Brazil are linked to prices of sugar and ethanol whereas in India Central Government fixes Fair and Remunerative Price (FRP) of sugarcane which is minimum price to be paid by sugar mills to farmers. These are some of the reasons for higher cost of sugar production in India.
The apex bodies of the sugar industry i.e. Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories Ltd (NFCSF), have request the Government to provide subsidy on marketing and promotion services of raw sugar production linked to export market. The Central Government vide notification dated 28.02.2014 has allowed to provide incentive for export of raw sugar during 2013-14 sugar season which was subsequently extended for the current sugar season 2014-15 vide notification dated 27.02.2015. During current season the incentive is available @ Rs. 4000 per MT upto a maximum of 14 Lakh MT.
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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Social Security for Tea Workers
The workers and their dependents in tea gardens are provided basic welfare services and amenities e.g. housing, medical and primary education, water supply, sanitation etc. under the Plantation Labour Act, 1951. The Act provides for compensation only to a worker in plantation in case of accident in accordance with the provisions of the Workmen’s Compensation Act, 1923.
Besides, the government implements through the Tea Board various welfare activities for tea plantation workers and their dependants in tea estates. The welfare activities undertaken by the Tea Board under the Human Resource Development (HRD) Scheme aim at improving the health and hygiene of workers, education of wards of workers and imparting training to improve skills for growers/workers.
Under the health and hygiene programme, financial support is provided for augmenting the infrastructure of the tea garden hospitals/health centres and procurement of medical equipment, and accessories, ambulance etc. Family welfare education programme and scouting and guiding activities are also supported for the benefits of children of the workers. Financial assistance is given to physically challenged plantation workers and their wards by providing crutches, caliper shoes, artificial limbs etc.
Under the Education and Training support programme, books, uniforms and educational stipends are given to the wards of workers. Vocational training programmes are organised for skill improvement and self employment of the dependants of the workers.
During the XI Plan Period (2007-12) the total amount disbursed for these purposes by the Tea Board was Rs.20.15 Cr. During the first two years of the XII Plan i.e. 2012-13 and 2013-14, the Board has spent Rs.14.31cr.and Rs.8.93 Cr. respectively on such programmes.
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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Conversion of EPZ into SEZ
Eight Export Processing Zones (EPZs) were converted into Special Economic Zones (SEZs) with the enactment of SEZ Act 2005 and Rules framed thereunder. However, no EPZ has since been converted into SEZ.
The contribution of SEZ exports, employment generated and investment made in respect of these 8 SEZs during the last three years is as under:
The performance of the Units are regularly monitored by the Development Commissioners of SEZs as per the provisions of SEZ Act, 2005 and Rules framed thereunder to ensure that exports are made in accordance with SEZ laws.
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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FDI Policy in Pharmaceutical Sector
As per extant FDI policy, FDI, upto 100%, is permitted, under the automatic route for greenfield, and under the government approval route for brownfield pharmaceuticals sector. Further, FDI, upto 100%, under the automatic route, is permitted for manufacturing of medical devices/ equipments both for greenfield and brownfield investments.
There is, at present, no proposal under consideration of the Government to review the extant FDI policy in the medical devices/ equipments.
In order to protect the domestic pharmaceuticals sector, FDI policy provides that ‘Non-compete’ clause would not be allowed except in special circumstances with the approval of the Foreign Investment Promotion Board. In addition, Government may incorporate appropriate conditions for FDI in brownfield cases, at the time of granting approval. Further, with a view to incentivize investment in the manufacturing of medical devices, the sector has been placed under the automatic route.
As per extant FDI policy, FDI, upto 100%, is permitted, under the automatic route for greenfield, and under the government approval route for brownfield pharmaceuticals sector.
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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Production of Coffee
The Coffee Board has been implementing through Central Coffee Research Institute (CCRI) several R&D programmes on coffee in collaboration with various International Institutions viz. Central Rusts Research Centre (CIFC), Portugal, CIRAD, Montpellier, France, Natural Resources Institute, UK. Coffee Board is also implementing a collaborative project with the World Coffee Research (WCR) organization at international level for improving Arabica coffee. The collaborative projects are aimed at evolving improved coffee varieties having resistance to major pest, diseases and drought and developing technologies for coffee production through improved soil health, management practices and eco-friendly measures.
One of the Growers’ Associations viz., Karnataka Planters’ Association had organized study tours to Vietnam, Brazil and Israel for the benefit of its grower members from 2011 to 2013.
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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Investment and Trade with Japan
In pursuance of the spirit of the Tokyo Declaration for India-Japan Special and Global Partnership, Department of Industrial Policy & Promotion (DIPP) has set up a Special management team known as ‘Japan Plus’ to facilitate and fast track investment proposals from Japan and to support the Government of India in initiating, attracting, facilitating and handholding Japanese investments across sectors. The team has been operationalized w.e.f. October 8, 2014. The Team comprises four professionals from India and two representatives of the Government of Japan.
According to Japan Plus, the team has guided over 120 Japanese companies on various aspects of business. Japan Plus has discussed with several state governments for setting up Industrial Parks of international Standard in order to provide a ready-made operational platform with basic infrastructure. As per information available with Government, there was US$ 1,107.59 million inflow of Foreign Direct Investment from Japan to India during June, 2014 to December, 2014.
No trade restrictions have been imposed by Japan on fisheries stock from India.
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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Tobacco Cultivation
The Government regulates the production of FCV tobacco through the Tobacco Board which has been set up under the Tobacco Board Act, 1975. One of the important mandates of the Tobacco Board is to regulate the production through fixation of crop size for FCV tobacco.
India is a signatory to WHO’s Framework Convention on Tobacco Control (FCTC) whereby there is an obligation to implement the provisions of FCTC in India to reduce the consumption of tobacco. Further, appropriate supply management helps in ensuring remunerative prices to the growers.
The Government has stopped issuing new industrial licenses for manufacturing of Cigarettes, Cigars, Cigarillos, Cheroots of tobacco and tobacco substitutes since 1999 on grounds of health.
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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Export Opportunities for India under Indo-Korea Comprehensive Economic Partnership Agreement (IK-CEPA)
India and the Republic of Korea signed a Comprehensive Economic Partnership Agreement (CEPA) on 7th August, 2009, which has come into force from 1st January, 2010. The Comprehensive Economic Partnership Agreement covers a number of areas including trade in goods, trade in services, rules of origin, intellectual property rights, investment, etc. The agreement promotes stronger trade and commercial ties between two countries, and opens up opportunities for exporters and investors to expand their business in the tariff lines which are opened or in which tariff is reduced. During the period 2009-10 to 2013-14, bilateral trade between the two countries increased from US $ 12 billion to US $ 16.68 billion, including increase in Indian exports from US $ 3.42 billion to US $ 4.20 billion. There are export opportunities for several Indian products in Korean market including, inter-alia, mineral fuels/ mineral oils, iron and steel, organic chemicals, aluminium and articles thereof, residues and waste from food industries, cotton products etc. In services sector, India has negotiated a ‘Trade in Services’ chapter under India-Korea CEPA wherein Korea has taken commitments in a number of sectors/sub-sectors that are commercially meaningful for India. Under sub-sector “Other Business Services”, Korea has taken commitments in many services including, inter-alia, advertising, management consulting, project management, technical inspection, placement of personnel etc., the benefits of which is available to Indian service suppliers. The Government on its part organises outreach programmes in various parts of the country to spread awareness among the Industry people/exporters/ service providers about the opportunities available under India-Korea CEPA to boost exports to Korea.
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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