FDI from Japan

Abstract:

FDI from Japan to India has increased over the years which in its turn have helped in the growth of the country's economy. The flow of FDI from Japan to India has increased due to the several incentives that have been provided by the Indian government.

All these measures helped to attract huge amounts of foreign direct investment in India. The various sectors that have been attracting foreign direct investment in India are cement and gypsum products, fuels, transportation industry and drugs and pharmaceuticals. The amount of foreign direct investment in India stood at US$ 2,634 million in 2003- 2004 and the next year, this figure increased to US$ 3,755 million.

Various industries attracting FDI from Japan to India are:

• Electrical equipments which includes electronics and computer software
• Transportation industry
• Services sector which includes non- financial and financial services
• Earth moving industry
• Telecommunications which includes cellular mobile, radio paging, and basic telephone services

Flow of FDI from Japan to India:

FDI from Japan to India has increased over the years as a result of which Japan ranks third among all the countries that make investments in India. FDI from Japan to India came to US$ 94 million in 2003, in 2004 this figure stood at US$ 116 million, and in 2005 this figure increased to US$ 168 million. The total amount of FDI from Japan to India came to US$ 1,254.8 million between 1991 and 2002. The total percentage of FDI from Japan to India stood at 6.8% out of the total foreign direct investment in the country from 1991 to 2002.

Last Updated on 3/18/2011