FDI Inflows to Industrial Machinery

This article deals with the FDI inflows in the Industrial Machinery industry of India. The FDI inflows in the Industrial Machinery of India offers tremendous growth opportunities in India.

A brief history of Foreign direct investment in the Indian industrial machinery industry:

The FDI inflows to the industrial machinery industry of India offers tremendous scope. With the stupendous rise of the Indian manufacturing industry, the scope of growth of the Indian industrial machinery industry is witnessing an upswing.

The opening up of the Indian economy during the early 1990s, facilitated access to world class industrial machinery in India. Further, with rise of manufacturing industry, especially the rise of engineering based industry, propelled the need for the development, vis-a-vis the FDI in the industrial machinery industry of India.

Details of the Foreign direct investment in the Indian industrial machinery industry:

The quantum of foreign direct investment in the Indian industrial machinery industry amounted to US $ 204.84 million during the period from August 1991 to December 2005. The cumulative percentage of the foreign direct investment during the same period was 0.65 against the total inflow of foreign direct investment during the same period. The period from the year 2002 to 2006 recorded setting up of around 95 industrial machinery projects in India. The industrial machinery industry of India is facilitated with 100% foreign direct investment through automatic route. The main states that attracted foreign direct investment in the industrial machinery industry of India are Maharashtra, Gujarat, Karnataka, Haryana (Gurgaon), Andhra Pradesh, Tamil Nadu and Uttar Pradesh.

Foreign companies that have contributed in Foreign direct investment in the Indian industrial machinery industry

• Siemens
• Alstom
• ABB
• Bosch
• Alcatel
• Cisco
• Mitsubishi

Last Updated on 4/23/2011