FDI Approvals in 2007

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
Rate this page:
The FDI Approvals in 2007 resulted in stupendous rise of the Indian Services, Computer Software & Hardware and Telecommunication sectors. The cumulative amount of Foreign Direct Investment in India during the period from April 2007 to October 2007 was Rs 269,786 crores.

This resulted in significant growth in areas like industrial production, agriculture, food grain production, imports, exports and wholesale price indexes, which further fueled growth, productivity and employment in India.

The main countries that contributed to the inflow of FDI in India during April 2007 to October 2007 were -

  • Mauritius
  • USA
  • UK
  • Netherlands
  • Singapore
  • Japan
  • Germany
  • France
  • Switzerland
  • Cyprus

The main sectors which contributed to the bulk of the FDI inflow in India during April 2007 to October 2007 were -

  • Services sector - including financial and non-financial sector
  • Computer Software and Hardware
  • Telecommunication - including radio paging, cellular mobile and basic telephony
  • Automobile industry
  • Housing and real estate
  • Power
  • Chemicals - other than fertilizers
  • Metallurgical industries
  • Drug and pharmaceuticals

The main Indian states that attracted the bulk of the FDI inflow in India during April 2007 to October 2007 were -

  • Maharashtra
  • Delhi
  • Karnataka
  • Tamil Nadu
  • Andhra Pradesh
  • West Bengal
  • Chandigarh
  • Goa
  • Madhya Pradesh
  • Kerala
  • Orissa
  • Rajasthan
  • Utter Pradesh
  • Assam
  • Bihar

The FDI Approvals in 2007 and its effects on the economy of India are as follows -

  • FDI - India envisage of attracting $10 billion of foreign direct investment (FDI) this year as inflows have nearly doubled to US$ 4.4 billion.
  • FIIs - net investments in equities crossed US$ 7 billion.
  • Industrial Growth exceeded 10% till October 2007.
  • Manufacturing growth rate has exceeded 12 % till October 2007.
  • The mining and quarrying sector has registered a growth of 4% till October 2007.
  • The electricity sector recorded 12% growth till October 2007.
  • Consumer durables and non-durables have also recorded upswings.
  • Telecommunication sector with inflows of US$ 405 million has registered the maximum growth of 950%.
  • Merchandise exports recorded strong growth.
  • The automotive industry achieved a growth rate of over 20% till October 2007.
  • The biotechnology industry registered more than 40% growth till October 2007.
  • Encouraged by the stupendous growth in 2005-06 the IT and ITES industry is targeting US$ 60 billion milestone in exports by 2010.
  • The US$ 47 billion Indian textile industry is expected to grow to US$ 115 billion by the year 2012.
  • The US$6.4 billion Indian retail industry is expected to grow over 20% annually to US$ 23 billion by 2010.
  • The robust pharmaceutical market in India ranks 4th worldwide and is expected to cross business worth Rs 100,000 crores in formulations and bulk drug production by 2010.
  • Corporate India has recorded its highest rise in salaries at 22% till October 2007.
  • India's Balance of Payments remained comfortable.
  • The Invisibles Account - remained positive and financed 2/3 of the trade deficit.
Last Updated on 3/17/2011