FDI Inflows to Dye Stuffs

The Foreign Direct Investment Inflows in the Dye-stuffs Industry for August 1991 to October 2006 stood at USD 16.01 million, which apparently comes to ` 592.04 million. India has emerged as one of the major producers of dye-stuffs across the globe.

Dye-stuffs Market in India-

India has emerged as one of the major producers of dye-stuffs across the globe. It has grown leaps and bounds in terms of manufacturing and distributing dye-stuffs. A report by Dye-stuff Manufacturers Association of India states that the Dye-stuff Industry in India has set a target to touch Rs 12,000 crores worth of exports of dyes and pigments by the year 2011. Dye-stuffs from India are mostly exported to Europe, US, Indonesia, Hong Kong, South Korea and Egypt. About 20 percent of India's dye-stuffs are exported to United States.

The developed countries do not wish to expand on their manufacturing of dyes and dye products but they prefer importing them from major producers of dye-stuffs such as India, China, Taiwan, Korea, and many more. This accounts for bigger revenues in Indian dye-stuffs industry as export activities are on a roll in order to meet the global demand. 100 % foreign direct investment is permitted to India under automatic route in the Dye-stuffs Industry. The foreign direct investments therefore have encouraged the Indian Dye-stuffs Industry to go in for infrastructural development and reconsider the collaborations as well as acquisitions to make it more competent with the international standard.

FDI Inflows to Dye-stuffs-

The Foreign Direct Investment Inflows in the Dye-stuffs Industry for August 1991 to October 2006 stood at USD 16.01 million (Rs. 592.04 million in Indian currency). FDI to dye-stuffs Industry constituted 0.04 % of the total FDI in India during this period. The FDI Inflows in Dye-stuffs Industry in India have led to the rise in manufacturing of products and have also made the industry export-oriented. Due to the foreign investments, the Dye-stuffs Industry are putting in more efforts to meet the global standard as export activities have become a primary area of concern in terms of trading of the products.

Last Updated on 4/23/2011