Report of the Joint Study Group on the Feasibility of India-Indonesia ...

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III.4. Investment Flows
III.4.1. India
III.4.1.1.Inward FDI 2
The total FDI equity inflows into India since <strong>the</strong> onset <strong>of</strong> <strong>the</strong> liberalisation process are nearly
US$100.4 billion until December 2008. The FDI equity inflows increased from US$3.2
billion (2004-05) to US$5.5 billion (2005-06) which amounted to an increase by 72 per cent.
FDI equity inflows were US$15.73 billion (2006-07), US$24.58 billion (2007-08) and US
$21.15 billion (April-December 2008). Cumulative amount <strong>of</strong> FDI equity inflows into India
for <strong>the</strong> period April 2000 to December 2008 were US$ 83.66 billion.
FDI reporting in India, since 1991, was capturing only <strong>the</strong> capital component provided by <strong>the</strong>
investor in <strong>the</strong> form <strong>of</strong> equity. However, FDI, as per international practices <strong>of</strong> reporting,
includes equity capital, reinvested earning and intra company loans. Government had
undertaken an exercise for adoption <strong>of</strong> <strong>the</strong> International practice in compilation <strong>of</strong> FDI
statistics. Based on <strong>the</strong> information collected, <strong>the</strong> RBI has revised <strong>the</strong> FDI inflow figures
since 2001-02 according, to <strong>the</strong> revised inflow figures, FDI was US$6.13 billion in 2001-02,
US$5.04 billion in 2002-03, US$4.32 billion in 2003-04, US$6.05 billion in 2004-05,
US$8.96 billion in 2005-06, US$22.83 billion in 2006-07 and US $34.36 billion in 2007-08.
Mauritius with a share <strong>of</strong> 43.79 per cent is <strong>the</strong> largest source, followed by Singapore at 8.04
per cent. The USA, United Kingdom, Ne<strong>the</strong>rlands, and Japan are <strong>the</strong> o<strong>the</strong>r main sources <strong>of</strong>
investment into India. Indonesia’s investment into India for <strong>the</strong> period August 1991 to
December 2008 amounted to US$ 40.10 million and it is 0.04 per cent <strong>of</strong> <strong>the</strong> total FDI
inflows coming to India for <strong>the</strong> given period.
III.4.1.2. FDI from Indonesia
An analysis <strong>of</strong> <strong>the</strong> foreign collaborations and foreign direct investment (FDI) approved by
<strong>the</strong> Government after <strong>the</strong> announcement <strong>of</strong> new industrial policy since August 1991 shows
that FC approvals and investment from Indonesia has risen substantially.
2 Source: SIA, DIPP, India.