Finance

Investment Opportunities in India

Foreign Investment

-› FDI approved in 2003 is US$ 3.1 billion as against US$ 4.43 billion in 2002. FDI inflows approved in the period April 1991-April 2003 stood at US$ 78 billion, of which US$ 35.5 billion has been realized. USA accounted for $ 16 billion (24.9%). The other major investor countries are Mauritius, UK, Japan, South Korea, Germany, Netherlands, Australia, France, Malaysia, Singapore and Italy in that order.


-› Even Chinese firms have started investing in India. For example, ZTE of China is investing $ 50 million in the telecom sector. Haier is investing 200 million dollars to manufacture refrigerators and set up a Rand D facility.


-› Sector-wise break-up of FDI is as follows: fuels -26.7%, telecom-19.6%, electrical equipments-9.9%, transportation-7.5%, services-6.5% and metallurgical industry-5.3%


-› Major FDI destinations are Maharashtra-17.4%, Delhi-12%, Tamilnadu-8.6%, Karnataka-8.2%, Gujarat-6.5%, and Andhra Pradesh- 4.6%.


-› MNCs , which have invested in India include GE, Dupont, Eli Lily, Monsanto, Caterpillar, GM, Hewlett Packard, Motorola, Bell Labs, Daimler Chrysler, Intel, Texas Instruments, Cummins, Microsoft, IBM, Toyota, Mitsubishi, Samsung, LG, Novartis, Bayer, Nestle, Coca Cola and McDonalds.


-› FII investment increased by almost ten times in 2003 reaching a record US$ 7.59 billion, as against a mere 739 million dollars in 2002. FII investment in the first quarter of 2004 stood at $ 4 billion. Cumulative FII investment since the equity market was opened in the early 1990s is $ 25 billion. The number of registered FIIs in India is 540.


-› CALPERS (California Public Employees Retirement System ), the world's biggest pension fund with a base of US$ 165 billion has recently decided to include India in their list of countries for investment.


-› US$ 6.5 billion of the FII funds in 2003 went into equities FIIs have 50 percent stake in one third of the 30 companies which make up the BSE-30 Index and hold about 10 percent of the stakes in public sector undertakings.