Thursday, Sep 04, 2003
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``We have to improve the investment climate. The main constraint is both physical and social infrastructure, which came in the way of not only FDI but also domestic investment,'' he said.
However, the FDI flows have started improving lately, reflecting signs of industrial recovery and better investor sentiments. ``You will see action (more FDI inflows) in coming months. Already there are signs of it,'' he said.
The Finance Ministry revised the definition of FDI incorporating 14 items like equity capital, reinvested earnings and other capitals, to align it with best international practices so that the inflows become comparable with other nations.
FDI inflow was at $4.66 billion in 2002-03 under the revised norm compared to $6.131 billion in 2001-02 and $4.029 billion in 2000-01.
Under the previous definition, the FDI inflow was at $2.574 billion last fiscal compared to $3.905 billion in 2001-02 and $2.342 billion in 2000-01.
Mr. Lahiri, however, pointed out that FDI inflows were higher at $1.2 billion during April-July this fiscal compared to $529 million in the same period last fiscal. Mauritius topped the chart in terms of FDI inflows contributing 34 per cent of the total inflow since 1991, followed by the U.S. (16 per cent), Japan (8 per cent), UK (6.6 per cent), The Netherlands (5.2 per cent) and Germany (5 per cent), he said.
The total FDI inflow into India was about $33.53 billion. The total investment committed by Indian companies in overseas markets also came down to $1.05 billion last fiscal compared to $1.39 billion in 2001-02. The inflows were $757 million in 2000-01.
Based on the previous definition, the FDI of Indian companies stood at $424 million in 2002-03 compared to $639 million and $514 million in the previous two years. PTI
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