FDI Approvals in 2000

Abstract:

FDI approval in India in 2000 was US $ 2.496 billion. Major FDI inflow occurred in India from UK, USA, Germany and Japan in the year 2000. New Delhi, Mumbai, Bangalore and Chennai were among the top Indian cities attracting FDI in 2000.

After the economic reforms implemented in the year 1991, India became one of the most suitable destinations for foreign direct investment. Regulatory measures were undertaken by the Indian government to generate investor friendly policies both for the foreign investors and domestic investors. The quantum of FDI approval in the year 2000 was US $ 2.496 billion.

The main countries that contributed to the inflow of FDI in India during 2000

United Kingdom - Rs 4121.0 million
USA - Rs 41398.0 million
Germany - Rs 5938.0 million
Japan - Rs 8275.0 million
Others - Rs 313990.0 million
Total - Rs 373722.0 million

Foreign Collaborations in 2000

In the year 2000, India entered into several foreign collaborations with many countries. Major among them are -

United Kingdom - 166
USA - 509
Germany - 198
Japan - 111
Others - 1160
Total - 2144

FDI in 2000 in different Indian cities

The Indian cities that attracted high volumes of FDI in 2000 are -

New Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Ahmedabad, Chandigarh, Kolkata, Bhubaneshwar, Kochi, Bhopal, Guwahati, Kanpur, Patna, etc

Important Factors of FDI in 2000

The factors which gave rise to increased inflow of foreign direct investment in India during the year 2000 are as follows:

• One of the fastest growing and largest economy of the world
• Investor friendly economic policy
• Strict legal and accounting system
• One of the fastest growing and largest manufacturing base of the world, covering almost each and every areas of manufacturing
• World class R&D infrastructure
• Large and cheap workforce consisting of world class scientists, engineers, technicians and managers in
• Abundance of natural resources
• Wide pool of English speaking workforce
• Easy convertibility of Rupee on Current Account at pre-determined market rate
• Full and tax free return of investments made on capital, technical fee, royalty, dividends , etc to India

The above-mentioned factors further gave rise to the confidence of foreign and domestic investors. Reports suggest that, India was the third most favored country for foreign direct investments during the year 2000, after China and United States of America.