Beruflich Dokumente
Kultur Dokumente
Prospects
Geethanjali Nataraj
18 March, 2009
Objectives of the Study
Region/Economy 1999 2000 2001 2002 2003 2004 2005 2006 2007
World 1086.8 1388.0 817.6 678.8 557.9 742.1 958.7 1411.0 1833.3
Developed Economies 828.4 1108.0 571.5 489.9 358.5 418.9 611.3 940.9 1247.6
Developing Economies 231.9 252.5 219.7 157.6 175.1 283.0 316.4 413.0 499.8
Asia 112.6 146.1 111.9 94.4 110.1 170.0 210.0 272.9 319.3
China 40.3 40.7 46.9 52.7 53.5 60.6 72.4 72.7 83.5
India 2.2 2.3 3.4 3.5 4.6 5.8 7.6 19.7 23.0
Japan 12.7 8.3 6.2 9.2 6.3 7.8 2.8 6.5 22.5
Source : World Investment Report, Various Issues
India Trade With Japan
6
$ Billion
0
2000 2001 2002 2003 2004 2005 2006 2007
Source : UN COMTRADE
Macro Economic Overview
FDI up to 100%
allowed in most FDI limits
sectors increased
Automatic Route
introduced FDI up to 74/51/50%
allowed in 111 sectors
FDI up to 51 %
Allowed In 35
priority sectors
FDI Allowed
selectively
up to 40%
Investing in India
By exception
General rule
Prior Government
No prior permission
Approval needed.
required
Decision generally
Inform Reserve Bank
within 30 days of Within 4-6 weeks
inflow/issue of share
India:FDI Outlook
Transpo rtatio n
Industry O t he rs Se rv ic e s
9% 47% Secto r
22%
Electricals C o m put e r
Others Equipment S o f t wa re &
62% 8% H a rdwa re
9%
Service Secto r Ho us ing &
7% R eal Estate
8%
Teleco mmunic
atio ns
7% Co ns t ruc t io
T e le c o m m u n A c t iv it ie s
Chemicals
nic a t io ns 8%
7%
6%
Statement on RBI’s Region-wise Break-up of FDI Inflows
(From January 2000 to October 2008)
Sl.No Regional Offices of RBI States Covered Share in Total
. FDI inflows
Country-w ise FDI Inflow s during Aug 1991-Dec 1999 Countryw ise FDI Inflow s during Jan. 2000- Oct.
2008
Mauritius
22%
Others
Mauritius
34%
41%
Others
U.S.A.
51%
14% Netherland
s Singapore
U.K.
Japan 4% 8%
6% U.S.A.
U.K. Germany 5%
7%
4% 4%
FDI Regime in Japan
900
800
700
US $ m illion
600
500
400
300
200
100
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Year
FDI Inflow s
FDI inflows from Japan
(US $ Billion)
Share of
FDI Inflows Total FDI
Year Japan in total
from Japan Inflows in India
FDI inflows
2002-03 0.41 3.13 13.15
2003-04 0.08 2.63 2.96
2004-05 0.13 3.75 3.36
2005-06 0.21 5.55 3.75
2006-07 0.09 15.73 0.54
2007-08 0.82 24.58 3.32
2008-09 0.23 21.15 1.07
Note: (i) Amount includes the inflows received through FIPB/SIA route, acquisition of existing shares &
RBI’s automatic route only.
(ii) The amount of FDI inflows in respect of the Country & Sector specific data is not provided by
RBI, Mumbai prior to January 2000
Sectors-Wise Technology Transfer Approvals
( From August 1991 to November 2007)
%age with
No. of technical
Rank technical
Sector Collaboration
s collaboration
approved
approved
1 Transportation Industry 247 28.69
Electrical Equipments
2 (Including computer software & 198 23.00
electronics)
Chemicals (other than
3 77 8.94
fertilizers)
Misc. Mechanical Engg.
4 53 6.16
Industry
5 Industrial Machinery 48 5.57
FDI Inflows Received From Japan through Indian Companies
(From January 2000 To November 2007)
Amount of
FDI inflows (
Name of the Indian Name of Foreign
Nos. Sector Amt in
company Collaborator
Million)
Rupees US $
Suzuki Motor Co. Transportation Industry
1 Maruti Udyog Ltd. 10000 208.3
Ltd. (Passenger Cars)
Escorts Yamaha
2 - Transportation Industry 4000 88.9
Motor Ltd.
Suzuki Motor Co. Transportation Industry
3 Maruti Udyog Ltd. 3990 83.1
Ltd. (Passenger Cars)
Yamaha Motor
4 - Automobile Industry 3000 65.2
India Pvt. Ltd.
Sanyo Electric Co.
5 Sanyo BPL Pvt. Ltd Telecommunications 2269 51.0
Ltd
Yamaha Motor
6 - Transportation Industry 2152 47.8
Escorts Ltd.
Hitachi
Mfg./Sale Construction
Telco Constructions Constructions
7 Equipment’s/Earth 2043 44.7
Equipment’s Co. Machinery Co.
Moving Machinery
Ltd.
Birla NGK NGK Insulators
8 Ceramics 1193 25.9
Insulators Pvt. Ltd. Ltd.
Welspen Dunearn
Textiles (including dyed,
9 Productions Pvt. Investment 1183 27.2
printed)
Ltd. Mauritius P. Ltd.
Escorts Yamaha
10 Yamaha Misc.Industries 1172 27.3
Motor Ltd
Official Development Assistance
• For instance, several industries in Japan are now in a sunset plane because
the current economic compulsions render them non-competitive. Such
industries have a future in relocating elsewhere and India is a first class
option.
• This is also in sync with the Look East Policy of India and Japan would
welcome if India acts as a counter balance to China in the region.
Japanese View